There is a time when getting a loan is the best move. Here’s when.
Home improvement projects are not cheap; a kitchen remodel costs an average of $26,000 in 2023. Over time, defunct windows, doors, floors, and other features become too old to take repair. However, replacements are expensive. Getting a loan for home improvements is an option, but is it worth it? We’ll take a brief look at the benefits of home improvement loans, the types of loans, and how contractors like you can help your customers achieve their goals.
Benefits of Home Improvement Loans
Help You Achieve Long-Term Goals
Getting a home improvement loan is beneficial if it helps a person achieve long-term goals. For example, few people have enough cash to afford an entire house, so a mortgage is a loan they get. Loans for transportation and education could also help achieve those respective life goals. As long as the loans do not cause frivolous and insurmountable rises in monthly debt payments, the loan is considered a “good” debt.
Help Finance Larger Home Improvement Projects
If the project is small enough, is it possible for someone to save up to pay it off at once? Home improvement loans help to pay for larger projects that one does not have the immediate cash for but not the time to save up. If the roof is falling in and someone needs a replacement now, a loan could help keep the person under shelter.
Help You Manage Your Finances Smartly
Ramping up monthly expenses is not what anyone wants, but it could be the smartest way to manage one’s finances. Home improvement projects are not the only expense people need to pay for each month. Budgeting is like a juggling act in which one manages the costs of food, housing, transportation, recreation, etc. If paying for a large project upfront will make other necessary payments unaffordable, then a loan is a good idea.
Home Improvement Loan Options
A home improvement loan is an umbrella term for multiple loan types, although the most common is a personal loan. A personal loan is unsecured, meaning you can take it on without risking losing property if you cannot pay it back. It also has a fixed monthly rate and interest rate.
Other types of loans include a home equity line of credit (HELOC), a home equity loan, and an FHA cash-out loan. Using a credit card is also possible.
Help Your Customers Achieve Their Home Improvement Dreams
Pure Finance Group is dedicated to helping home improvement contractors set up the best financing options for their clients. Let us help you offer the best home improvement financing deals for your customers!
Pure Finance Group Is Here to Help!
Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our lending services can help you with your home financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any lending services we provide including home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!