Quarve Contracting
Monday 17 February 2014

How to Pay for Your Next MN Home Remodeling Project

Posted by at 9:00 AM

01jan27c3a14Wouldn't it be nice to wrap up your next home improvement project with all your bills stamped like this?  While it may not always be possible, there are things you can do to keep from getting in over your head financially. One of the biggest factors that you have to consider before starting any home improvement is how you're going to pay for it. There are many options of financing available for those people looking to gain a bit more out of their homes. The decision on whether or not to finance the project depends on how much cash you have handy and the size of the project that you want to do. Equity in the home can also help you finance the loan that you need for the project that you want to get started.  Home equity loans or refinancing are often attractive ways to pay for a remodel, since they add value to the home, and under the current tax code, interest is tax deductible, unlike interest on other kinds of loans. Make a Home Remodeling Budget Making sure to set a budget is a big thing when it comes to financing and going through any project. This is because you want to ensure that you have enough to pay everyone in the end. Without allocating the right amount of money for the various facets, you're going to be lost.  You want to try to avoid going over budget, but you should give yourself some wiggle room in case something is a bit more expensive than you first planned. Usually around 20% extra is good to have handy for the project.  Keep in mind that as your home remodeling contractor gets into the process, something unexpected may be uncovered that needs to be fixed before further work can be done. You May Have Many Options to Finance Your Project There are many options for you to get the cash that you need such as equity on your home or refinancing in a new way with a re-done home loan. There are even loans that are specifically for home improvement that you can obtain from your bank. If you've had your accounts on deposit with your bank for awhile and you've got a sound credit history, you may be able to get an unsecured loan if it is a smaller project that is not going to cost too much. Depending on what you have to work with and the interest rate that you'd like, one loan might be better suited for you than another. Tapping into a retirement fund is also something that people found handy and you do not have to worry about closing costs with this type of loan.  However, you'll want to check with your tax professional first, because there may be tax consequences. Be Sure to Calculate the Payments Beforehand Making sure that you can cover the monthly payments afterward is another big thing with any loans that you decide to take out. You want to borrow as much as you can afford but not too much.  There are a number of loan calculators on the internet that can help you figure payments at the rate and amount you're considering.  You can then move forward with a bank that is able to help you determine the right loan with the right interest rate.  If you've got an established relationship, your personal banker would be a great information resource person. Use Cash When Available to Finance MN Remodeling If you have some sort of savings that's not categorized as a retirement plan, then this would be the best choice to go with when it comes to financing any project.  You'll have peace of mind due to the fact that you're paying up front, you're not borrowing so there is nothing left to pay back when it comes to it, and there is no interest to add to the cost. Quarve is a full-service exterior home remodeling contractor that is able to install roofing, new doors or windows, or even siding on the home that you own in the Minneapolis or St. Paul MN area.  If you've got a project in mind, give us a call today.  We'll be happy to give you an idea of what it would cost - no charge and no obligation.  763.785.1472.