How You Can Finance Your Home Renovation

Outdated kitchen. Overrun backyard. Unusable basement space. If you have a home renovation project on the mind, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality.

Cash. Paying in cash is the most straightforward financing option, just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget; however, it can also extend your timeline.

Mortgage Refinance. If you’ve been making payments on your home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance, reducing your payments and freeing up some money.

Cash-Out Refinance. You can tap into your home equity and borrow up to 80 percent of your home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home, as it can add a lot of interest and fees.

Home Equity. Getting a home equity line of credit allows you to borrow money against the value of your home. You receive usually up to 80 percent of your home’s value, minus the amount of your loan.

Retirement Funds. Homeowners can consider pulling money from a 401K or IRA account, even though they aren’t specifically meant to cover a home renovation. This option might incur additional penalties or tax payments, but may be worth it when making improvements that will benefit them financially in the long run.

CREATE THE HOME OFFICE OF YOUR DREAMS

Whether you work full-time at home or occasionally need to conduct business in the evenings or on the weekends, a home office a great way to utilize an extra room. A dedicated workspace in your home can be designed to increase productivity and comfort. Here are 5 ideas to get you started.

1. Invest in a good office chair. Investing in an ergonomic office chair is essential. You may be spending anywhere from 30 to 50 hours a week sitting in it, so your back will thank you. Purchasing one with multiple adjustments is ideal so it fits you just right.

2. Switch up your lighting. Fluorescent lighting has been proven to be hard on the eyes. Make the switch to LED or halogen light bulbs in your home office and try to let in as much natural light as possible. Also, consider finding a desk lamp to reduce headaches and eye strain.

3. Keep essentials in reach and organized. Nothing says productivity like a clean, neat workspace. Select a desk with a lot of storage or install creative shelving to keep items like pens, pencils, extra batteries, calculators, notepads, and more stored within arm’s reach.

4. Decorate bright. Pick a color you love and use it to spice up the room. Use cheery yellow or red or relaxing tones like green and blue, instead of beiges and browns.

5. Aim for the view. If possible, place your desk so you are facing a window instead of a blank wall. Natural light can do wonders for staying alert and you can give yourself a short mental break when necessary by looking to the outdoors.

WHAT TO REPAIR BEFORE YOU LIST

When you’re getting ready to list your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths and fix up some of its possible weaknesses can make a big difference in how fast it sells. Here are our top four recommended repairs to make before selling your home.

Repaint walls.

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up, and generally, it can be a do-it-yourself project. Make sure cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat.

Repair floors.

Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. If your carpet is worn or stained, consider replacing them. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new!

Refresh the landscaping.

Show buyers your home is the full package by dressing up the outside as well as the in. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix your fixtures.

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment

Your Top 6 October Home Maintenance Items

1. CHANGE YOUR AIR FILTERS

Replace your furnace air filter.  With all the ash and smoke from our Colorado forest fires this summer and still going…. Changing your furnace filter is very necessary!  Make sure you have a supply of filters on hand.  My rule of thumb is when I notice that dust is collecting more between weekly dusting – it is time to check and change the filter.

2. CLEAR OUT RAIN GUTTERS AND DOWN SPOUTS 

Clean gutters, downspouts and clear blockages.  This is a leading cause of water damage to a home.  The water gets blocked and causes damage to the exterior paint, landscape, and even issues with foundation issues.

Any type of activity on the roof can pose danger.  Consider calling in a pro.  Cleaning costs average $70-$200 depending on your home. 

3. OCTOBER IS FIRE SAFETY MONTH  

1.    Now is a good time to have a fire safety and evacuation conversation with your family.

2.    Check to make sure your fire extinguishers work.  If you don't have one now is a good time to get one or a few.

3.    Change batteries or fire detectors that are over 10 years old. (Need help reaching the high ones? Call the non-emergency fire department number and ask if they can send someone out to help.)

4.  STOW THE HOSE AND WINTERIZE YOUR SPRINKLER SYSTEM

Get your outdoor water system winterized before freezing temperatures arrive and cause damage.   Put your hose in the garage and winterize your irrigation system.

5.  CLEAN AND PROTECT OUTDOOR FURNITURE 

Wash and protect your outdoor furniture and appliances.   The elements can cause further damage.  

 6. FERTILIZE YOUR LAWN

Lawn fall preparation is key to a healthy upcoming spring and summer lawn. Prepare your lawn with these fall tips and you'll enjoy a lush lawn and have far less to do this upcoming spring!