Home repair projects can be costly and unexpected, making home repair loans a preferred option for covering the cost. If you need some extra funding to cover home improvements or major repairs, you have several options available.
Here is a quick guide to the most common ways to pay for a home repair or home improvement project:
Home equity is a popular option for paying home repair costs. A home equity line of credit, or HELOC, works similarly to a credit card with an approved borrowing limit. Typically, a HELOC has a borrowing period followed by a separate repayment period.
HELOC interest rates have the potential to fluctuate throughout the life of the loan. However, you only have to pay interest on the amount borrowed. Since you’re borrowing against your home’s equity, you’re also using your home as collateral, meaning you run the risk of losing it if you’re unable to make payments.
Another option for paying your home repair costs is a personal loan. Personal loans are unsecured, so you don’t need to be concerned with collateral. If your repairs are time-sensitive, you can often get an unsecured loan much more quickly than a HELOC or home equity loan. Sometimes you can receive financing as early as the next business day.
Typically, personal loans offer adjustable or fixed interest rates, although personal loans generally have higher interest rates than mortgage loans. However, you can generally expect decent rates as long as you have a good credit history.
If you need financing for a home repair, there are options beyond home equity loans and personal loans. Some other ways to pay include:
There are many factors to consider when choosing the right type of financing for your home projects. While home repair loans have their advantages, it’s important to consider all the options available to you.
Hi! I'm Brinda Thielman. Thank you for your interest in exploring Arizona real estate with me.
As a native Arizonian, I have seen the growth in the “Valley of the Sun” first hand. With over 30 years in the real estate industry, I know how challenging and intimidating buying and selling a home can be. That's where I come in! When I started my real estate career, I quickly found I loved every aspect of the home buying and selling process, from touring a home, researching the best mortgage loan for my clients, new construction details and even the negotiation and closing process.
In 2015, I help found McCarthy Thielman Realty, LLC. Today it is one of the leading boutique real estate firms specializing in North Phoenix real estate.
My mission is to help you accomplish your real estate goals and dreams - "I'll Lead You Home!"