How About If I Want to Remodel My Own Home?
Are you looking to remodel your home but don't have the money? You're not alone; there are plenty of people in the same boat, and there is a solution for home additions. Did you know that you can actually tap into your home equity for home additions like replacing your roof, building a pool, or adding on that in-law suite you've been contemplating? You may even be able to do it if you don't have enough equity in your home to float a home improvement loan.
How Can I do It?
Home equity loans and credit lines have historically provided homeowners with tax-deductible sources of cash, but you don't necessarily have to go that route. You might find it interesting to know that up to 33% of homeowners in the United States actually have negative, or near negative, equity in their homes - in other words, they owe more money than their home is worth.
With this in mind, banks and other lenders might be reluctant to lend money to remodel your home, and you have to look for other options for home additions.
Of course if you can pay cash, that's always best, but it's not always possible. So, what do you do if you want to remodel your home?
If you're smart, you've been saving. Most financial experts recommend having at least the amount of two paychecks in a savings account at any given time. If you have been able to save, then of course you can tap into your savings account to remodel your home.
We're not really suggesting that you max out your plastic - it can be very tempting, but given the high interest rates on credit cards, it's probably not your best course of action. Accordingly, use your credit cards for home additions only if you're sure that you can pay them off at the end of the month.
Have a Yard Sale
No, really! You might be amazed at how much money you can make selling stuff that you no longer want. Set up a table in your yard, sell your unwanted items, and then use the proceeds to pay for your home additions.
Also consider eBay, or Craigslist.
Just pick up a hammer and some nails, and get to work. You can do a lot of home remodeling projects on your own. If you don't feel overly handy, look at online resources that tell you how to manage it on your own.
Also, recruit your family and friends. Provide them with hammers, nails, and instructions, and get it done. You can save literally thousands of dollars.
Borrow from Family
Don't forget the Bank of Mom and Dad. Of course, if you're going to go this route to remodel your home, make sure that you get the terms in writing - they really do need to get the money back.