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3 Best Ways to Get the Home Improvement Money You Need
Does your home need repairs? Do you have the desire to make the improvements, but just not the money?
We have found that oftentimes people really do want to improve their property—either as a way to get more money when they sell, or simply for their own enjoyment. Unfortunately, many homeowners just don’t have the liquid funds available to make it a reality.
Here are 3 great ways that you can potentially get the cash you need to repair or improve your home:
Home Equity Line of Credit (Or HELOC)
If you have equity tied up in your home, and need to use that equity for a short period of time, a HELOC can be a great option. Many banks offer these loans and they are a much faster and more cost-effective way to access your home’s equity than going through the process of a full refinance. The one real drawback of a HELOC is that rates are typically a bit higher than traditional mortgages and they are often adjustable rates as well. However, if you are only going to use the funds for a short period of time, the ease and lower upfront cost can definitely make this a worthwhile option.
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Cash-out Refinance
When your needs might be longer term, considering a full refinance of your home might be the best option for you. Though the process is typically longer than that of the Home Equity Line mentioned above, the benefit is that you will be able to secure a lower, long-term interest rate with a full refinance. In many cases, you can even pay off or consolidate credit card and other higher interest debt into a more attractive payment by using the cash-out refinance option.
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Collaborate with an investor or private money lender.
If you have sufficient equity in your home and don’t want the hassle of applying for and obtaining a traditional refinance or HELOC, securing a loan from a private money lender can be a good way to tap into the unused equity you have.
One of the main challenges with this approach is that of actually locating a lender. Asking around through your network of friends may prove to be a good way to find someone. Additionally, contacting your local Title and Escrow Company and asking them for a referral can sometimes prove valuable as well.
As with the HELOC option, interest rates are typically higher and in many cases private money lenders also have fairly low loan-to-value parameters in many cases. However, if you have sufficient equity in your home, the ease and speed of the private money process is often very attractive to the right borrower.
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Want more info on getting the cash you need?
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There is no cost, and no obligation.
