You have a gorgeous house, and oh, the things you’d like to do with it!  Maybe you want it all—a luxurious sunroom, granite kitchen countertops, a giant Jacuzzi tub for the bathroom and so much more—or maybe you’re just thinking of one project like a new back deck.  Big or small, remodeling projects cost a lot, so how will you go about financing them?  Don’t worry; Legacy has your back and we’ve got plenty of solutions to share.

  1. Break Out the PlasticYou might have a bit of spare cash to help start a new project, but not quite enough to see it through.  When this is the case, and you don’t want to drain your bank account to fund a project, using your credit card(s) may be possible.  If you’ve had a credit card for a while, you know how they work: each has a set monetary limit that you cannot exceed without incurring penalties (which should aid you in staying under or on-budget).  The interest can sometimes be steep, but this shouldn’t be problematic so long as you pay your bill promptly.  Plastic is generally a better option for smaller-scale projects with costs in the hundreds or low thousands, like installing a new sink or replacing double pane windows, ensuring that you don’t overspend and amass debt that cannot be repaid.
  2. Grab a Home Equity Line of Credit (HELOC)Believe it or not, some remodeling endeavors take a few years to complete.  Are you planning on adding a second or third floor addition to your home?  That’s an ambitious project that will take great amounts of both time and money before you can enjoy your beautiful new space.  Such projects might be best funded by sources like a home equity line of credit (HELOC).  HELOCs are ideal for long-term remodels because they allow the borrower to take money periodically for a length of time.  They function a bit like credit cards, as you’ll be able to spend or borrow up to a set limit (dependent on the equity in your home).  Interest rates are variable, but our friends at say that if you can increase your line of credit to $235,000, not only will you very likely have enough funding for the project but you can lock in a lower rate and have smaller closing costs.
  3. Use That 401(k)Did you know?  Some 401(k) plans can be drawn from for home remodeling financing.  While not universally true (it’s best to check first), the plans that allow retirement fund borrowing are invaluable.  If you’re able to tap this resource, you will benefit from low interest rates and zero fees, making it easier to obtain and use the money for your desired purposes.  Remember, however, that the money borrowed must be paid back ASAP to avoid penalties and leaving your job will mean repaying in one lump sum.
  4. Refinancing is Your FriendRefinancing your home benefits you in so many ways.  For one, refinancing means upping your mortgage to more than you owe, so it’ll pay off your original mortgage.  If that’s not good enough, you’ll get cash back.  This cash is what’s going to help fund your project.  The process will require paying closing costs again, but in the end, you’ll be able to afford a stellar remodel and lower your interest rate.
  5. Take Advantage of Personal LoansThere are a number of loans that homeowners can take out to fund a home project, such as home equity loans and personal loans.  The first of these requires that you use your home as collateral if you fail to repay, however personal loans do not require this.  Note that this option is ideal for smaller-scale projects as such loans are in smaller amounts, such as $10,000.  These loans will often come from banks and have moderate interest rates, making them relatively accessible and trusted sources.
Financing your home improvement project, whether you’re replacing double pane windows or totally overhauling the space, doesn’t have to be a hardship.  There are so many options available to help make your dreams come true.  Refinancing, careful credit card use, loans and more will provide a boost to bring your fantasies to fruition.  Didn’t think about these ideas?  That’s what we’re here for—to bring you great ideas and service and put the power back into your hands!