How Should You Pay for Home Repairs?

Every homeowner needs to make repairs (or renovate) at some point. Maybe a storm blew down part of your fence, or maybe you want to upgrade your kitchen countertops.

No matter what home improvements you’re going to make, you’ll need the money to cover it. And, while credit cards or personal loans could be an option, they typically come with high interest rates that could lead to higher costs.

Before going that route, consider one of these lower-cost options instead.

• Savings: Often, the best way to pay for home repairs or renovations is with cash, so there’s no debt or interest involved. Just make sure you don’t drain your savings; you’ll still want to have money on hand in case of emergencies.
• Home Equity Loan: This type of loan lets you borrow from the equity you’ve built in your home. They typically come with much lower interest rates than credit cards and personal loans, so they may be easier to pay off.
• Home Equity Line of Credit: Also known as a HELOC, this is another option for borrowing from your home equity. Instead of a one-time loan, though, they work more like a credit card, allowing you to withdraw funds as you need them (up to a certain limit).

Don’t forget: Your home insurance may help cover the cost of some home repairs, so check with your agent to see what your policy includes. In the case of larger repairs (like roof replacement), you may only need to cover the cost of your deductible, and the insurance company might pick up the rest.

If you have a home warranty, that could also help with appliance replacements and other improvements.

Are you ready to search for a home that better fits your needs? Get in touch today.