How Do You Use A Home Equity Loan For Renovations?
If it’s time to renovate your home, then borrowing money against the equity you have built up is a way to pay for it. Home equity loans generally come with lower interest rates when compared to other types of personal loans. And in many cases the interest is tax deductible which will help you lower your taxable income. But before you pursue the financing, determine what your needs really are. Determine how much equity you have in your home so you can get an idea how much money you have to spend on the renovations. Subtract the amount of money you owe on your house from the estimated value of the home. The difference is the amount of equity you have to work with. Decide if you will be doing the renovations all at once or a little at a time. If you’re doing some of the work yourself or it will be done in several phases, a revolving equity line of credit may make more sense than a fixed term loan. That way you’re only paying interest on the amount of the loan you’re using at the time. App
