The How-To of Financing Small Home Improvement Projects
There are many different ways to finance small home improvement projects, such as:
- swimming pools
Some contractors offer to finance, so homeowners with limited credit or poor credit can secure the funds they need for their desired project. Besides, credit cards can also be used to charge the projects; however, the finance charges for either payment method could be expensive. Qualifying homeowners can take a second mortgage or home equity line of credit to cover the project’s costs, although depending on the size of the project, their possible closing costs could make them an unnecessarily expensive form of financing as well.
Secured Personal Loans
Depending on the small home improvement project, a personal loan may be the most appropriate form of financing. They offer a variety of different term options, and a wide range of principal amounts, from $500 up to $100,000. Fixed interest rates start as low as 5.99%. There are no closing costs or prepayment penalties, and the borrower won’t have to use his or her home for collateral to obtain the loan.
If the homeowner chooses to do their own small home improvement project, to make the most of their personal loan, they are free to do so.