Penny Calling Penny

SHARE

Take control of your financial future with Penny calling penny!





    Home Improvement servinces
    Home Improvement servinces

    Disclaimer: Penny Calling Penny is an affiliate website. This means that we get a small commission when you click some of the links in this article. Don’t worry – we’ll never recommend anything we wouldn’t use ourselves.

    It is everybody’s dream to own a house, but after building, leasing, or buying the house, whether you live alone or live with your family, maintenance and home improvement are continuous processes for as long as you live in the house.

    It is most likely that you will have one or two projects to carry out in various intervals in your home. For example, you may need to change the leaky roof, refurbish the kitchen cabinet, etc.

    This article will look at some of the best ways to finance your home improvement and best home improvement loans, among other things related to home improvement, to be discussed.

    Home Improvement

    The process of making an addition or renovating one’s home, i.e., upgrading of home interiors, exteriors, or other improvements to the property, is known as home improvement.

    Home improvement, also known as home renovation or remodeling, is an industry worth almost $300 billion in the U.S, and the average cost per project is recorded to be $3,000 in the United States.

    There is always a need to work on your home’s electrical or plumbing appliances or renovate the roofing, concrete, or masonry to a new look or your preference. Whatever reason that might prompt you to make these changes, one of the questions that come to mind is “What is the best way to finance home improvement?”

    Best Way to Finance Home Improvement

    Data by a traveler’s insurance survey shows that 75% of Americans will be making improvements to their homes because of the increasing transition to work–from–the home that has become the order of the day, all thanks to improvement in technology. But home improvement doesn’t come free, as financial experts recommend you save between 1% and 3% of the initial value of your home for repairs and maintenance annually.

    So as much as you will spend money on your home improvement, you can as well, do it yourself by learning one or two skills to knock off a large percentage of your potential repair bill.

    One of the best ways to finance home improvement is by “doing it yourself,” Below is where to learn home improvement skills.

    You Can Learn Online.

    As regards doing it yourself, you can go online by visiting “Houzz,” a social media platform that connects enthusiastic “Do it Yourself” remodelers and home professionals for inspirational designs and tutorials. Other sites you can also explore are Youtube and Wikihow.

    Visit a Workshop

    Some prefer physical classes to online tutorial videos. You can also explore the option of visiting a nearby community college that offers home improvement classes or find in-person instruction at hardware stores like Lowe’s or Home Depot for a nominal fee.

    Volunteer to Gain Experience

    You should volunteer and make yourself available to get hands-on experience with a real house, and to do this, you need to sign up for a local Habitat for Humanity build.

    Some home improvement projects may require you to hire professionals, which will result in you spending from your savings to finance the projects.

    Below Are the Seven Best Ways to Finance Your Home Improvement.

    Pay Cash

    It is probably the easiest choice to make if you have the cash to shell out, but the questions are “How much should you shell out for your home renovation?” and “when should you hold onto your cash?” instead.

    Apply for HELOC

    This is another source of funding that offers three options: home equity line of credit (HELOC), cash-out refinancing, and home equity loan.

    Dip Into Your Savings

    This is where the habit of savings saves you from the embarrassment of inevitable home repairs and projects. You should set aside a token in your emergency fund that can be used for emergencies.

    Use Cash-Out Refinancing

    The cash-out refinance is probably the best option if you are planning to stay in your home for several years to recoup the cost, and it is when you replace your existing mortgage with a new one at a larger amount.

    Use a Home Equity Loan

    One of the best home improvement loans is the home equity loan, also known as the second mortgage. It is a process where you pay back the money borrowed from a lender at a fixed interest rate over some time.

    Accept a 0% Financing Offer

    The option of a 0% financing offer defers your loan interest and is not necessarily an interest-free loan. But so long as you pay your full amount in the introductory period’s deadline, you will get your interest waived.

    Apply for a Home Improvement Personal Loan

    Aside from the home equity loan, you can also apply for one of the other home improvement loans, the “personal loan,” which is relatively faster and easier than the home equity loan. A personal loan is considered an unsecured loan with less paperwork, and your account should be ready in less than a week when you apply for an online personal loan.

    Home ownership can really wreck a budget.

    Unexpected expenses, pricey renovations… how can one person stay on top of it? With a checklist that covers all the major expenses of homeownership and how often you should expect them. Our checklist is FREE, just tell us where to send it! Along with our newsletter.

    Tax Deduction

    For your home improvement, you should also think about the tax deduction, which is the deduction that lowers your tax liabilities by lowering your taxable income. Knowing what tax deduction means, the next question should be “What home improvements are tax-deductible?” but before that, let’s see if home improvements are tax-deductible.

    Are home improvements tax deductibles? For federal income taxes, home improvement taxes are generally not deductible. However, renovation for medical purposes may qualify as tax-deductible medical expenses, and also, you may qualify for a tax credit by installing energy-efficient equipment on your property.

    Let’s take a look at home improvements that are tax-deductible in 2021

    Home improvement Types of savings When you can claim it
    Energy-Efficient Renovation Credit Same year
    Home Office Improvement Deduction Same year
    Home Improvement for Resale value Deduction Year of sale
    Home Improvement for Medical care Deduction Same year
    Rental Properties Renovation Deduction Same year

    Best Credits Card for Home Improvement

    Credit card Best for Credit score Annual fee Welcome Bonus
    Chase Freedom Unlimited® Best overall Excellent/Good $0 $200 bonus
    Chase Sapphire Preferred® Card Best for Flexible Rewards Excellent/Good $95 100,000 bonus points
    Citi Rewards+® Card Best for Small Projects Excellent, Good $0 15,000 points
    Chase Sapphire Reserve® Best for Travel Perks Excellent $550 60,000 bonus points
    Ink Business Preferred® Credit Card Best Business Welcome Bonus Good, Excellent $95 Earn 100,000 bonus points
    U.S. Bank Visa® Platinum Card Long Introductory 0% APR Offer for Purchases Good/Excellent $0 N/A
    Ink Business Cash® Credit Card Best for Home Improvement Gift Cards Good, Excellent $0 Earn $750 bonus cash back
    Capital One Venture Rewards Credit Card Best for Flat-Rate Travel Rewards Excellent, Good $95 60,000 miles

    Best Home Improvement Loans

    Lending Partner APR Term Max Loan Amount
    Light Stream 3.99% 2-12yrs $100,000
    Upgrade 5.94-35.97% 3-5yrs $50,000
    Best Egg 5.99% 3-5yrs $50,000
    PenFed 5.99-17.99% 1-5yrs $35,000
    SoFi 5.99-19.63% 2-7yrs $100,000
    Payoff 5.99% 2-5yrs $35,000
    Avant 9.95-35.99% 2-5yrs $35,000
    OneMain financial 18.00-35.99% 2-5yrs $20,000

    Owning a home is not enough, but maintaining and improving the home to standard and the latest trend is what makes you a “concerned homeowner” who wouldn’t watch his home depreciates over damages and other home appliances faults. This article must have helped you in determining the best way to finance your home improvement.

    About

    About

    "The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind."

    T.T. Munger

    You May Also Like

    You May Also Like

    Home Improvement Checklist

    SEARCH