Updating the interior of your home can not only create a space that is more comfortable to live in but can also make it easier to find a buyer if you decide to sell it in the future. No matter why you choose to redecorate your home, you can finance your project in a number of different ways.
When deciding how you want to pay for your project, it is important to compare all of your options. By looking for the best loan terms possible, you can get the money you need without having to pay a lot of interest in the process. Here are some of the most popular financing options for redecorating a home:
1. Borrow against the equity in your home.
Building equity is a natural part of owning a home. Not only are you continually paying down your mortgage but the value of your property is most likely also going up. Over time, this can help you build quite a bit of equity. In most cases, you can borrow against this equity through the use of a home equity loan or a home equity line of credit.
When you take out a home equity loan, the lender gives you a lump sum of money just like you would get with a traditional loan. A home equity line of credit, on the other hand, allows you to borrow small amounts of money against a larger line of credit anytime you need them. This is usually the preferable choice for decorating a home since it allows you to only spend as much as you need.
2. Take out a personal loan.
If you don’t have any equity that you can borrow against, you may want to consider looking into a personal loan instead. It doesn’t take a lot of money to completely change the look of your home – especially if you stick to affordable projects like painting, updating your flooring, or switching out your furniture. Taking out a small personal loan is a good way to pay for these types of minor improvements. Low rate guarantor loans can really help and if used wisely can add plenty of value to the home.
3. See if the store where you buy your furniture offers financing.
Most retail stores offer financing options to their customers. If you just need to buy a few new pieces of furniture, garden items or even wall water features, you can check with stores in your area to see what types of financing are available.
Just be sure that you read the terms of the loan carefully. Find out how long you have to pay and what your interest rate will be over time. Oftentimes, these loans shift to a higher percentage rate after a specific period of time. Ideally, you should try to pay off the loan during the window of time when the interest is the lowest.
4. Charge the project to a credit card with a low introductory rate.
Oftentimes, credit card companies offer extremely low introductory interest rates. In some cases, they even waive the interest altogether for the first year that you have the card. Charging your decorating project to one of these cards can be a good way to pay. Just be sure that you are able to pay off the card before the higher interest rate kicks in. Additionally, try to avoid charging all the way up to your limit on the card. Using too much of your available credit can negatively impact your credit score.