Home improvement can be a fun and exciting way to improve your house. From refinishing the floors to putting in new windows, there is almost no limit to what you can do to your house. But what do you have to consider before taking on a project? What types of upgrades will actually increase the value of your home? And what are the common home improvement mistakes that you should avoid?
Many homeowners take on projects with an ulterior motive: boosting their home’s resale value. After all, who wouldn’t want a state-of-the-art kitchen or a fully-finished basement? But that’s not always the case. In fact, some projects can actually decrease your house’s resale value.
Fortunately, there are some projects that will increase your home’s resale value. For example, replacing your old windows with new energy efficient ones can save you money on your utility bills and increase your home’s curb appeal. Another popular upgrade is adding a smart thermostat, which can help you save even more by adjusting your heating or cooling based on the current weather and your home’s historical energy usage patterns.
Other popular upgrades include installing a wood deck or a fence, landscaping, and updating your kitchen. Depending on the type of work, you may need to hire contractors or perform the work yourself. But whatever the scope of the project, it’s essential to create (and stick to) a budget. If you’re planning on spending a lot of money, it could be worthwhile to consult with an experienced real estate agent or contractor before beginning the project to ensure that you are adding value to your home.
What is the Best Loan to Finance Your Home Improvement?
The type of home improvement project you’re undertaking and your financial situation will both influence the best loan option for you. For instance, if you have a high credit score and minimal equity built up in your house, a personal loan with relatively low interest rates might be the best choice. However, if you’re already in the process of paying off your mortgage or have substantial equity built up, a cash-out refinance or HELOC might be better options. Credit cards, on the other hand, generally have much higher interest rates and should be avoided for large-scale home improvement projects or long-term financing. Instead, you might want to consider using a secured or unsecured personal loan with a longer repayment term to save on interest costs. But whatever you do, remember that it is crucial to maintain a debt-to-income ratio below 30% to avoid damaging your creditworthiness. This is especially true if you plan to use your loan to pay for ongoing repairs or maintenance. You should also make sure to compare your financing options carefully and choose the right one for your specific needs.