19 Mar 5 Creative Ways To Fund Your Condo Renovations
Admit it! You love the prospect of starting your next condo renovation, as it can significantly improve your comfort. Still, you can’t help thinking about your financial status and how you will cover the costs of such projects. And many condo renovation projects can turn out to be rather costly. But before you quit this task, you should know there are five creative ways to fund your condo renovations. Read on to find out how to start improving your home today.
1. Create A Savings Account
The first and most efficient thing you can do is create a savings account. This is useful if you want to avoid going into debt for condo renovations, but you should know it might take some time and dedication from your part until you gather a significant amount of money. Anyhow, several advantages might come from creating a savings account for condo renovations, including the fact that you won’t face high-interest rates or lending fees.
2. Consider HELOC
A home equity line of credit is a type of loan that can offer you up to 80% of the equity in your home. Many homeowners consider HELOC as an additional mortgage, as this is a reliable solution to getting funds for condo renovations. Still, it is highly recommended to ask for a professional’s advice before you submit your HELOC request. He or she has the necessary knowledge to guide you through the process.
3. Consider A Cash-Out Refinance
If the first two solutions don’t fit your needs or expectations, you can always consider refinancing your primary mortgage. In this way, you will debate the conditions of your mortgage and achieve a loan similar to your mortgage. Keep in mind that in this scenario, you will receive the equity you have in your home at the moment you are signing for the loan. The main advantage of this funding option for your condo renovation is that the interest rate is fixed. Anyhow, if you have a bad credit history, this cash-out refinance solution might not be advantageous for you.
4. Consider An Additional Mortgage
Many homeowners who plan a condo renovation assess whether or not it might be helpful to get a second mortgage to cover for the costs. Still, even though it might be great to access a sum of money almost instantly, you should know that it is highly recommended to ask for professional advice before securing a second mortgage. In this way, you will avoid making ill-advised financial decisions, and you will establish the best plan for returning the money.
5. Consider Sweat Equity
Well, a creative way to fund your condo renovations might be considering a do-it-yourself approach. Hiring contractors with extensive teams of laborers might take a toll on your financial status. Hence, you can consider some sweat equity by merely asking your friends or loved ones to help you with your condo renovation. You can save thousands of dollars, as you will have to redirect your funds exclusively to the materials needed to renovate your condo.