Home Improvement – A Comforting Investment in These Unsettling Times
Rock-bottom interest rates have made home improvement a more attractive investment than ever. It’s also a comforting investment during these unsettling times. Surveys reveal that the majority of homeowners will hire out some work to improve their homes in 2021. In fact, a recent study by Axiom found that 90 percent of DIYers plan to increase their time spent on home improvement projects in 2021.
The average home improvement project costs over a thousand dollars. That’s the highest level since the survey began seven years ago. This is likely because of the recent pandemic, which has spurred people’s attention to their homes. Home prices are up 20% year-over-year, while materials prices are 400% higher than pre-pandemic levels.
When considering home improvements, it is important to decide how much you want to spend. Some projects can be paid for in cash, while others may require other financing. There are six different types of home improvement loans, and you’ll need to choose one based on your home equity, your credit score, and your goals.
A home equity loan is a great option if you can’t afford a large down payment. This type of loan requires fixed monthly payments and is repaid over five to 30 years. However, be sure not to borrow more than 85% of your home equity. Also, home equity loans may have origination fees, closing costs, and appraisal fees.