| By Laura Horwitz |
Hip Home Columnist
If you desperately want to undertake a home
remodeling project, but aren’t sure whether you can afford it,
don’t despair. Depending on the type of renovations you want,
a variety of loans are available, and with some home remodeling
projects you can even recoup a high percentage of the cost at
Compare Home Equity Loan
offers from up to 4 competing lenders. You get a better loan to improve your home - when lenders compete.
MoneyNest.com is a free service that matches borrowers with lenders. Refinance your mortgage
, get a second mortgage, consolidate debts, get a home equity line of credit, or a home improvement loan.
Home Equity Loan
For a major home renovation, you might want to consider a home
equity loan. This is essentially a loan taken against the
increased value of your home, also known as a second mortgage.
It might be worth it if you’re undertaking a remodeling project
that’s likely to add value to your house.
You can choose to take out either a standard
home equity loan, which is a one-time lump sum that you pay
off over time, or a home equity line of credit (HELOC), which
works more like a credit card with a limit and you can borrow
up to that amount within a certain time period. For either of
these, you have to pay off any debt that remains when you sell
When Is It Worth Getting a Home Remodeling
Certain types of home renovations, whatever their cost, tend
to recoup more of their value at resale better than others.
In 2006, top remodeling projects and the average percentage
they recouped at resale nationally are:
- Siding replacement (especially with new vinyl siding): 87.2%
- Minor kitchen remodel: 85.2%
- Window replacement: 85.3% for wood and 83.7% for vinyl
- Adding a deck: 76.8%
- Mid-range bathroom remodel: 74.9%
- Adding a bathroom: 74.9%
You may also be able to apply for an energy-saving
loan through your local utility company to pay for energy-efficient
upgrades, such as insulation or a new HVAC system. And, you'll
probably save money on your utility bills as well.
Bankrate.com, Home remodeling: pick renovations that pay off
RemodelingOnline, Cost vs. Value Report 2006
About the Author
Laura Horwitz has worked as a freelance writer and researcher
for five years in both London and the US. She had a monthly
landscaping and tips column for the Sussex County magazine RH
Review, and her articles have also appeared in Film Focus, 6
Degrees Film, and BizBash magazine.