Photo by STEPHANIE BRADSHAW

The reason behind this is when you are paying cash; you will not have to concentrate on the rate of interest. However, at certain times, home renovation can also come in the form of an emergency repair. During this situation, it is going to be much better to pay the interest rate on the home loan in comparison to paying cash. If you are constantly saving money to repair your roof or your ceilings, you might end up saving money but the damage will become extensive, which will make you pay more. According to www.hsh.com, 90% of homeowners are interested in remodeling or redecorating their home at one point in time.

You must make the necessary changes to your home so that you can keep it perfect and livable. There is a certain section of people, who are constantly interested in making upgrades, and that is why they prefer going for home improvement loans. Irrespective of why you are interested in borrowing money for improving your home, you need to understand the best options that are available to you and you should also evaluate them based on the situation that you are in.

If you are interested in redecorating your home, you can consider the list of the options that have been listed below.

Traditional Loans for Home Improvement

Traditional home improvement loans are responsible for allowing homeowners to borrow a certain sum of money to clear the money that will be required for necessary labor as well as purchase materials for completing projects. The projects include remodeling the bathroom, changing the decoration of the kitchen, adding swimming pools, and replacing the HVAC system. Traditional banks, online lenders, and credit unions are responsible for offering home improvement loans. These are nothing but unsecured loans.

This, in turn, means that the homeowner will not have to provide collateral for the home improvement loan. This is why the rate of interest is going to be higher in comparison to secured loans like home equity loans. It is also important to understand that the rate of interest is dependent on the credit score of the borrower, the term of the loan, and the total amount that is borrowed.

Personal Loans as Well as Personal Lines of Credit

A personal loan is responsible for giving the borrower a certain sum of money, which they can use for improving and redecorating their homes. People make use of personal loans for starting businesses, paying money for vacations, consolidating their existing debts, and also to take care of their home decoration. A personal loan is similar to the home improvement loan because it does not require any collateral and does not put the home or any of your other assets at risk. Personal loans are not like home equity loans. Also, you can get a low rate of interest and a huge loan amount when you opt for secured personal loans in comparison to unsecured loans. You also have the option of getting personal loans even when you do not have equity. These types of loans are funded quickly.

Personal lines of credits are also similar to personal loans. However, you will not have the option of borrowing a huge sum of money at once. Rather, you have the option of drawing upon a certain credit line as required for a particular number of years. A credit line can help you to avoid borrowing more money in comparison to what you require by allowing you to access cash at times when you need it. However, certain homeowners do not track their borrowing, which means that it is not difficult to borrow more money than what is intended. Small draws on your credit line can make the amount that you have borrowed unexpectedly large.

The period of repayment for traditional home improvement loans, lines of credit, and personal loans are shorter in comparison to the repayment period of home equity loans. The borrower will have the option of paying less interest with time, although the payments of the loan every month are going to be higher.

Peer-to-peer Loans

With the help of peer-to-peer lending, you will have the option of receiving unsecured loans when you are interested in improving your home. The loan is going to be funded by several investors who will be responsible for providing tiny amounts to numerous loans for diversifying the risk. You will have to make a single monthly payment, and therefore, you are going to feel like you are repaying a loan only.

Like the situation that you face with the other lenders, a peer-to-peer loan is also the same. The interest rate is going to depend on the credit score that you have and the total amount that you are interested in borrowing along with the repayment period. These loans are responsible for having small payment periods of around 3-5 years, and it is not going to be a problem to get out of debt easily. To gain more information on this, you can go through the website of Liberty Lending. You can also get this kind of a loan even when your credit score is low, however, in this situation, the rate of interest that you have to pay is going to be higher.

Going for a peer-to-peer loan that has a high rate of interest is a much better option in comparison to charging the entire expense of home improvement to your credit card with high rates of interest. The reason behind this is that you will have to clear the peer-to-peer loans within 5 years but in the case of the credit card balance, you will be dragged out and required to pay the interest rate for almost forever.

Conclusion

There are several ways of paying money for your home decorations and improvement, starting from the traditional home improvement loans to private lenders, personal loans and peer-to-peer loans. Regardless of the kinds of loans that you are interested in considering, it is a great idea to shop around and find out if you are getting the ideal rate as well as terms on the home improvement loan.

Photo: Heydt Designs

It costs about $9000 to renovate a bathroom and $20,000 to remodel your kitchen. It’s no wonder, then, that so many people are keen to save on labor costs by trying to take some of the work on as a DIY project. However, there are definitely some jobs that you should never tackle unless you have the right skills and experience. Complex jobs like electrical work, tile setting and plumbing should be carried out by a suitably qualified professional. However, there are many other jobs around the home which require virtually no experience and which can be handled by almost anyone.

The key to successful home renovation lies in figuring out which tasks you should tackle alone and which require the expertise of a professional. Here, we take a look at some jobs around the home so that you can make the right decision for you.

Photo: J. Wilson Fuqua & Associates Architects

Safety First

There are 3 signs to look out for that will tell you that you should hire a professional.

1. It’s dangerous enough to kill you – the first thing to consider is what might happen to you if you accidentally make a mistake. Electrical work or roofing could be so dangerous that you could be killed and that’s a major red flag to tell you to hire a professional.

2. Your home could be destroyed – major plumbing work like moving fixtures in your bathroom could end up seriously damaging your property if you don’t install everything properly.

3. A permit is required – if building permits are needed you should always hire a professional. This will guarantee the job is done safely.

If you use a contractor you can avoid making a costly mistake. If you tackle a job yourself and it goes wrong, even if your home isn’t severely affected, it can be expensive to rectify and then carry out the work properly.

Poor quality DIY work could also lower the value of your home. No buyer wants to purchase a home with poor quality repairs or construction work.

Photo: Legacy Custom Homes

Only Tackle Jobs You Know You Can Do

You should never tackle any home repair DIY job unless you’re completely certain you know how to do it. If you have no experience that might not be a problem as long as the job is simple enough and you have the right resources to hand to show you in simple steps what to do. On the other hand, if a job is so specialized you’d need to have special training to tackle it, hire someone who knows what they’re doing.

If you’re going to undertake any kind of DIY work yourself, you also need to be certain that you have all the necessary equipment and safety gear to get the job done properly and safely. For example, without the right safety clothing, gloves, footwear and helmet welding can be extremely dangerous to tackle independently. However, if you’re looking to make spare keys, there are guides and kits available that can assist you, but it’s essential to weigh the risks and benefits before deciding to proceed on your own.
Go to this link to find out more about how to choose the right equipment for your project if you’re determined to go it alone.

Photo: B Architecture Studio

Pricing Up The Job

If you’re target is to save money on a project or home renovation, you need to figure out whether it’s actually worth it to do the job yourself or whether hiring a professional could actually be better value for money. Add the costs together of doing the job yourself – don’t forget the cost of all the materials and the energy used to power the tools. Then subtract that amount from the professional estimates to see if the saving is worth the time and hassle that you’ll need to put in.

It’s important to note that the choice between hiring contractors and a DIY project isn’t just about money it’s also about safety, speed and hassle as well as achieving a good result. Although there are lots of jobs around the home you can easily complete independently, it’s always wise to hire a professional for any job with which you’re uncomfortable or which you can’t tackle safely.

Have you checked you furnace maintenance date? Did you take photos of your most valuable possessions for your insurance company? These are probably things you’ve most likely forgotten about or had no idea you had to do! I have to admit, I’m super guilty when it comes to home management and this year I’ve decided to get on top of things to help save money, time, and most importantly keep my home safe this New Year!

I recently discovered an INGENIOUS home management app called Home Zada – it’s a lifesaver for busy families with jam-packed schedules and even for new homeowners that may not know exactly what they have to keep track of in their new home. You probably have a ton of house-related info in a big mess of disorganized files, envelopes, boxes, and even on your computer. Home Zada basically takes away the mess and acts as one big folder keeping track of EVERYTHING and sends alerts when things are due or need to be done.

You may not realize it, but it’s super important to have all this important information regarding your home at hand and fast! Imagine if you need to make an insurance claim, an appliance maintenance fix, or a mortgaging refinancing and you can’t find your information – this can mean thousands of dollars lost just like that!

It’s super easy to use Home Zada – with the tap of a button all your info is there in one convenient place.

The app also has a few other great features like the remodelling module. Here you can manage your landscaping, design projects, and kitchen reno project. It helps you save money and stay in control by tracking your budget, costs, photos, and documents.

If you are planning on selling your home, the app let’s you build a professional digital profile where you can publish your own Zada listing. Great if you want to add more information and photos for your buyers to view.

There is also an inventory section, which is perfect for insuring you against fires, burglaries and natural disasters. All your photos, documents, receipts and videos are in one safe place!

Home Zada is really an essential tool that I would recommend to ANY home owner. It takes a few minutes to set up and then your worry free! It will send alerts to your computer or phone whenever something needs to be done, letting you focus on more important things in your packed schedule. You can download the app right here or sign up on the website to get started!