Having home improvement projects completed will help increase the value of your home. The projects can include installing insulation in your attic, updating appliances or even adding a new roof or driveway. Some home improvements are deductible when you sell your home.
The best type of home improvement loan depends on your needs. You can choose between a personal loan or a home equity line of credit. Getting a personal loan may be easier and faster, but the interest rate may be higher.
Getting a home equity line of credit may be a better option for a long-term home improvement project. If you have a home equity line of credit, you can borrow as much as 85% of your home’s value. However, it can take some time to get approved.
Another option is to take out a home improvement loan from your existing bank. The interest rate may be higher, but the lender is more likely to approve your loan. In addition, your loan will be secured by your home.
The Harvard Joint Center for Housing Studies predicts that home remodeling will rise at the beginning of the year and then slow down to a sustainable level. That’s due to rising mortgage rates.
While your home improvement project may be tax deductible, you must keep track of labor and material costs. If you don’t itemize these costs, you’ll be liable for sales tax on the work.
The best way to find out how much you can expect to pay for your home improvement project is to get an estimate. A quick online search can give you a rough estimate.