Whether you’re getting a set of new windows or a home addition, you will need funding for it. If you don’t have cash ready on hand, don’t worry; there are other ways to fund your remodeling project. Woodbridge Home Exteriors shares financing options for your home improvement project.
Using your credit card is ideal for financing projects under $15,000, as it’s easy to pay within one or two years, good for taking advantage of zero-interest payment plans. Also, it doesn’t require placing your home on collateral, which makes it a less risky option.
Personal or Unsecured Loan
Personal or unsecured loans can be an option for projects that cost between $15,000 to $50,000. “Unsecured” loans are named as such because they don’t require collateral. The application process is pretty much straightforward, not as difficult to be qualified for, and has longer payback periods. However, it is worth noting that personal or unsecured loans tend to have the highest interest rates. This means you may just break even if you’re planning a high-ROI home improvement such as replacement windows.
A secured loan means your home will be placed as collateral. This option typically has a higher payout than the previous two types, ideal for large home improvements such as roof replacement.
There are three types of secured loans:
Cash-Out Refinance — This type of secured loan requires recomputing your existing mortgage and takes out funds that you can use for your home improvement project. You should note that this option basically puts your mortgage back to square one, not ideal if you already have paid several years’ worth of it.
Home Equity Loans (HEL) — Home equity loans are like taking out a second mortgage on your home. Depending on the lender, you might be required to pay back the principal within the first 15 years.
Home Equity Line of Credit (HELOC) — HELOC is similar to HEL, except that you have a revolving open credit instead of getting all the money at once. This is ideal if you are looking into doing several minor projects over the years, instead of spending it all on one major remodeling project.
Legitimate contractors like us offer financing options through tried-and-true financing partners. This is an ideal option for financing projects on short notice, or if you need funding tailored to fit the cost of the project.
Woodbridge Home Exteriors is your leading provider of replacement windows and other home improvements. Give us a call at (972) 217-7585 (Texas), (405) 252-1548 (Oklahoma), and (316) 226-8011 (Kansas). You can also fill out our contact form. We serve clients in Lubbock and Fort Worth, as well as in Wichita, KS.