In the past year, home improvement projects in America have surged in popularity thanks to COVID-19. Finding themselves stuck at home, people everywhere finally ran out of excuses to get that long-talked-about home improvement project underway. Unfortunately, due to this recent spike in the number of home renovation projects, the price of materials has shot up much the same way.
With prices of materials going through the roof, you might think you don’t have the money to renovate your home, but trust us when we say you can get the renovation you have always wanted with proper planning and financing. Whether you’re remodeling a fixer-upper or just improving the home you already own, reach out to EC Roofing at 410.237.8046 to learn the best tips for financing your renovation project.
Home Renovation Costs
Before you seek financing, you need to have a good idea of your project’s cost. Many factors will influence the ending price of your renovation, but to get an idea of the ending cost, it helps to think of it in terms of labor and materials. If you plan on doing the project yourself, you can get around paying for labor costs and save a ton of money. On the contrary, if you hire a professional company like EC Roofing, you need to factor our labor costs into the overall project price.
Tips for Financing Your Renovation Project
There is no set price for a home renovation, but one thing is for sure, almost all of them are expensive. Fortunately for you, there are several great ways you can secure financing to lessen the blow to your personal bank account. Some of the most common ways you can secure financing are through the use of any of the following:
- Personal loan
- Credit cards
- Mortgage refinance
- Home equity loan
Personal home renovation loans are an excellent way for you to quickly secure the financing necessary for your small to mid-sized renovation projects. Credit unions, banks, and many online lenders offer personal loans, but they tend to have higher interest rates due to their non-secure and expedited nature. The amount and interest rate you are approved at will fluctuate depending on your credit score and history.
Using a credit card can be an effective way to finance small home improvement projects and can even pay should your card offer cashback rewards. However, credit cards tend to have a higher interest rate, so we think they are suitable for minor renovation projects and not major remodels.
A mortgage refinance can be a great way to secure the financing you need for your renovation projects. If you aren’t already familiar with it refinancing is when you take a new loan out on your home, replacing your existing mortgage. This allows you to pocket the difference and put your newly acquired funds into renovating your home.
Home Equity Loan
This type of loan uses the equity of your home as collateral against your loan. While it is a great way to secure the funds you need, missing or failing to make payments can lead to your home being foreclosed on. On the upside, the interest rates on home equity loans are fixed, meaning you will pay the same monthly price over the loan’s lifetime.
Baltimore Roofing & Home Improvement
Materials are constantly fluctuating in price, and much like gas, you might be able to find the same material for cheaper a half a mile down the street. The more places you check when pricing materials, the better your chances of finding more affordable prices. For the initial estimate, you can contact a few places to get a rough average cost. Still, when you purchase the materials with your newly secured financing, we recommend checking the prices in as many places as possible. EC Roofing offers excellent rates and guaranteed satisfaction in many home improvement services, including:
Financing Home Renovations in Maryland
For nearly 30 years, EC Roofing has been providing Maryland with professional home services, and we would love the chance to add you to our list of happy customers. Contact us today at 410.237.8046, or contact us online to schedule your consultation so you can put that newfound financing to work.