Have you ever shopped online for a while, had a full ‘cart’ and during your stint on the ‘check-out’ page you get cold feet and return all the items, or better yet, ‘x’ out of the window altogether? Or, perhaps you’ve wandered around your favorite store, filled up your cart, and then when looping towards the check-out area, you skip it, take another loop around the store and return all your chosen items? 

 

We as consumers can get cold feet, buyers remorse, and anxiety when it comes to taking that final step to ownership. Whether it be through the interface of a computer, a cell phone app, or under the fluorescent lights of a big box store, the rational part of our psyche can override (thankfully) the impulsive part of our nature. Can I afford all of these things? What will my bank account look like after I check-out? If I spend my money now, will I have any left in 2 weeks? 

 

Shopping for your home remodeling project is no different. The ‘shopping’ can look like years of idea gathering, conversations with family members, inspiration boards, practical lists… all the steps needed when leading up to a home renovation project. And, when it’s time to press ‘go’ and really make the action happen, it can be a nerve-wracking experience. Can I really afford all of these things? What will my bank account look like? Same rational-headed questions start seeping in and it can be hard to pull the trigger. 

 

Distinct Construction, owned and operated by brothers Dave and Steve Noll, are experienced in not only the design and implementation of home renovation projects, they are sensitive to other aspects of renovations, specifically financing and affordability. With years of industry experience, the Noll Brothers understand that if one is to successfully complete a renovation project, one of the most important aspects that has to be first and foremost decided is the financing of said project. The best laid plans are no good without the foundation of solid financing. 

 

According to www.nerdwallet.com, a reputable online resource for relatable and reliable financial advice, here are 6 different ways to finance a home improvement project.

 

  1. Mortgage Refinance: If your interest rate on your mortgage is higher than the current market rates, a mortgage refinance could lower your rate, and your monthly payments, therefore freeing up cash. You could also consider a ‘cash-out refinance’ to access some of your home’s equity; some instances you can borrow enough to pay off your current mortgage and take our up to 80% of your home’s value in cash. 
  2. Home equity line of credit (HELOC): a way to borrow against the value of your home, but unlike a refinance, it doesn’t pay off the original mortgage. Instead, you get a line of credit; that comes with a period of time in which you are allowed to spend and also a timeline of the repayment period, which typically will last around 15 years.
  3. Home equity loan: Instead of getting a line of credit as a HELOC, you would receive a lump sum of money. A loan could make sense if you don’t want to refinance your first mortgage, especially if you already have a low interest rate. 
  4. Personal loan: another means of borrowing without putting up your home as collateral, instead, you as the borrower would need good or excellent credit to qualify. Interest rates are usually higher with personal loans than with home equity financing. There’s a shorter time frame to repay the money (approx. 5-7 years). If you have good credit but not much equity in your home, or you’d prefer a shorter repayment period, this could be a good choice.
  5. Credit Card: Using plastic gives you the benefits that come with using a credit card, rewards! Most companies will give you some type of benefit for every dollar spent, but you’ll want to make sure you pay off your balance over a short period of time, because the high interest rates that generally come with credit cards can be detrimental.
  6. Save up and pay cash: time and patience are a beautiful duet in this option; eliminating any financing charges, paying with cash can also make it easier to stay within your budget.

 

Contact Distinct Construction to begin the conversation about your next home renovation project. Specializing in Kitchens, Basements, and Bathrooms, Distinct Construction is proud to serve Northern Kentucky in distinct excellence.