Wednesday, February 06, 2019 / by Holly Northup
The first thing you should figure out is how you will pay for any upgrades you choose to do.
This is where the Bucher Group can help you. We have many lenders that we would be more than happy to recommend if you don’t have the money in hand to pay for renovations you would like to do.
Most lenders can give you advice on how you can go about affording that new kitchen, flooring, updated bathrooms or even a pool. And truthfully, you have many options!
According to a recent article we read, here are the top ways to meet the expense of these facelifts to the home you love and adore.
SAVINGS – Obviously, this is the easiest and best solution for upgrades because you would be paying back yourself and not having to pay interest.
RETIREMENT SAVINGS – Using your 401K is an option, but probably not the best since you must pay a penalty for withdrawing the money before you reach the age specified in your plan.
HOME EQUITY LINE OF CREDIT – This is a great option if you have equity in your home and if you don’t know how much your project will cost. You basically pay back what you’ve borrowed with interest.
HOME EQUITY LOAN – You also are borrowing against the equity in your home, but this is where you are essentially refinancing your home and taking out cash from the loan you will then pay back in a lump sum.
PERSONAL LOAN – This is where you take out a loan that has nothing to do with the equity of your home. The downside is that these loans usually have a higher interest rate and also have to be paid back in a shorter amount of time.
CREDIT CARDS – Many large stores have free interest for a year or two if you use their credit cards to purchase the needed supplies for your project. This is a great option if you can pay your loan back by the end of the free interest option. It is not a good idea if you can’t pay the credit balance back in the allotted time because the interest is usually higher than a different kind of loan and the store will normally charge you for the year or two that you didn’t have to pay interest on originally.
Of course, the Bucher Group would be more than happy to sell your home and find you the perfect new one for you and your family. However, we also understand that people have diverse needs. We hope this information will help you in your future endeavors.
If you or some you know is interested in buying or selling real estate in the Austin area, please contact Kathleen Bucher at KathleenBucher@mac.com or 512.794.6644. It would be an honor to earn your business!