The idea of customizing your home to fit your style and preferences is one of the most attractive things about owning a home. But, with renovations come the daunting thoughts revolving around money. If you’re wondering how to fund your own home improvements, you’re not alone! Here are 4 creative ways to fund home renovations so you can create the home you want without stressing over how you’re going to make it happen financially.
Creative Ways to Fund Home Renovations
Refinance Your Mortgage
Refinancing your mortgage is one of the most common ways to fund home renovations. If you’ve been in your home for multiple years and you’re in a market that is steadily increasing in value, consider refinancing your mortgage. Depending on your current interest rate, you might be able to refinance at a lower rate, and/or a lower term which cuts down your monthly payments. Also, if you first purchased your loan with private mortgage insurance, and you’ve gained 20% in equity, you are able to refinance into a conventional loan which eliminates the mortgage insurance from your monthly payments. Talk with your lender to discuss which refinancing options are best for you.
More and more people these days are taking on side hustles to help fund their side projects. Whether you decide to drive for Uber, write content for websites, or photograph weddings in the summer, deciding on a side hustle can help you reach your goal of renovating your home. Additionally, a side hustle can help you tap into a passion of yours aside from the normal grind of your day job. From exercising to teaching, side hustles are a great way to balance your life as well as make some extra cash to fund your home renovations.
Take Out Home Equity Loan
A home equity loan allows you to tap into your equity without refinancing your entire mortgage. This is a fixed rate loan in which you must take all the cash at one time. Many people refer to home equity loans as second mortgages since homeowners get them in addition to their first mortgage.
Get Serious About Saving
Although it can take some time and a lot of disciple, good old fashion budgeting and saving is on the most common ways to fund home renovations. Think about how much you go out to eat, how much leisure shopping you do, and how much coffee you buy from coffee shops. Create a budget of a desired amount spent on each other these categories and stick to it! You’ll be surprised at home much you can save by sticking to a plan!
You may also like: How The 50-30-20 Rule Can Help With Your Down Payment