Blog

Sep
12
How to Save for Home Improvements?

Certain home renovations improve the visual appeal of the house and make it more energy-efficient. Some repairs will pay for their cost by helping the homeowners to save money on utility bills and other expenses. The following are essential repairs that are worth considering for your house.

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  1. Window Replacement

Over the years, windows tend to require a replacement due to wear and tear from exposure to extreme weather and operations. However, window replacement will improve the curb appeal of your home and help you to reduce energy bills. There is a wide array of replacement windows that suit the architectural design of your home and your budget.

  1. Replacement Door

Doors are the gateway to your house, and they play a vital role in the security of the home. They also enhance the aesthetics of the building. Leverage on replacement doors to boost your house's security, functionality, energy efficiency, and curb appeal.

  1. Basement Waterproofing

Basement waterproofing is essential to protect the integrity of your house foundation. Water leakage in the basement causes a lot of health risks and property damage as well as basement flooding. When looking for essential house repairs, check your basement waterproofing if it is in a functional condition.

  1. Roofing

The roof of a house is its crown. A leaking roof is hazardous as it exposes the house to water damage and health risks. Your roof is a crucial home repair you unavoidably have to consider.

  1. Painting

Repainting your house gives it a new look and fresh breath. Painting is about the last phase of repairs you need to carry out on your building.

  1. Plumbing

The plumbing system of your house should be examined and repaired if necessary. Replace weak or damaged faucets. Have you serviced your water heater tank? Hire a professional plumber for the repairs of your home.

So now the question is, how do you save for these? Here are 5 ways to save for your home renovations and improvements:

1. Disaster Relief

If your house requires repairs based on a disaster, you can contact bodies such as the Federal Emergency Management Agency (FEMA) and Red Cross. FEMA can provide you with fund emergency repairs for safety and healthy sanitary condition. However, the fund is not meant to restore your house to its state before the disaster.

2. Home Equity Line of Credit (HELOC)

The HELOC is a borrowing option against the current value of your house. You can get a line of credit that can be up to 80 percent of the value of your home minus the total amount of your loan. HELOC usually specifies a draw period and time for repayment.

3. Home Equity Loan

Home equity loan differs from HELOC. You do not get a line of credit but a lump sum of money, which you can use for your home repairs such as window replacement, replacement window, and basement waterproofing. You can go for this option if you do not wish to refinance your first mortgage. It comes with low interest.

4. Mortgage Refinancing

Refinancing your primary mortgage after financing your home some years ago is another option to raise money to repair your home. A mortgage refinancing could reduce your monthly payment, allowing you to have some money left for fixing your home. It is, however, noteworthy that your home will be the collateral for this loan. Meanwhile, you can choose a cash-out refinancing if the repairs will increase your home's worth.

5. Grants and Rebates

Find out if your municipal government or local utilities offer grants and rebates for renovations and repairs that improve the energy efficiency of your home. For example, there may be a refund of up to 25 percent for window replacement or replacement door to enhance the energy efficiency of your home.