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Consider a Home Equity Loan for Remodeling
Maybe WFH (work from home) has you noticing how much your house needs updated. Or maybe home remodeling has been on your to-do list for some time. No matter what the reason, before you take on a new project, you might be looking for a few home remodeling tips. And home remodeling financing.
Greater Alliance has you covered. We offer tips to get started. And then consider our new home equity loan that allows you to finance up to 100% of your home’s equity.
- Set and stick to a budget
- Hire a reliable contractor
- If DIYing, make sure your skills are up for the test
- Stay positive
- Consider your financing
Don’t budge your budget
The first step in home remodeling is setting a realistic budget. The second step is sticking to it. If you feel a little lost trying to decide on a budget, a good place to start is to secure estimates from multiple contractors to help determine costs and what you can reasonably afford.
Because remodeling can easily come out more expensive than you expect, reserve at least 10% of your budget for unexpected costs. You may discover you need additional work done, such as new insulation or electrical rewiring.
Do your contractor research
Look for contractors who belong to the National Association of the Remodeling Industry (NARI) and who have a good track record with the Better Business Bureau. Ask your friends and family for referrals.
Always ask contractors for before and after pictures. Get referrals from past customers so you can talk to them. No matter how boring it sounds, read the contract word-for-word. Make sure not to sign a contract you don’t understand. Make sure costs are apparent and the start and end date are clear. And if they don’t have a contract? Look somewhere else.
Also, ask contractors what they expect for a down payment. Down payments are common to help the contractor pay for supplies. It’s unusual for contractors to ask for more than 15% down (although some states allow them to ask for more).
If DIYing, consider your skills
DIY home projects can save you money—but not necessarily time. And if you’ve been watching TV home shows, you might think remodeling is easy. But, keep in mind those are professionals who are tearing out walls and installing plumbing. Before tackling your big project, do a few small ones first to make sure you actually do want to DIY. Trying a larger project and having a professional fix it will cost more in the end.
Also remember that you are responsible for knowing about and getting required permits. Some local governments require building permits to make sure your renovation meets fire and structural safety standards.
Consider home remodeling financing
If you’re planning to finance your project, one way to do that is by taking out a home equity loan for remodeling.
With Greater Alliance, you can now get a home equity loan for up to 100% of your home’s equity. Our loans feature:
- Rates as low as 5.49% APR for qualified borrowers
- Flexible repayment terms, from 5 to 20 years
- No annual fees, application fee, or appraisal fee or prepayment penalties
- One low fixed monthly payment option
Greater Alliance also offers a home equity line of credit that features:
- Rates as low as 4.49% APR or qualified borrowers
- Repayment term up to 20 years
- No annual fee, application fee, appraisal fee, minimum draw or prepayment penalties
- Access funds on an “as needed” basis
What’s more, the interest on your home equity loan for remodeling may be tax-deductible. Talk to your tax advisor to learn more.
Following these home remodeling tips can help bring you a solid return on investment. If your next project is just around the corner, consider a home equity loan. Contact Greater Alliance to get started.