Getting a Handle on Home Improvement Costs and Financing
Home improvements aren't done just to improve a home's value; they're also done to improve the quality of life of the people living there. When you're looking at home improvement cost versus value, don't forget to add in the value of enjoying your home. Sometimes it's worth it to include a more costly upgrade just for you.
Going upscale can also be a good financial decision. Some of the high-end remodeling projects add quite a bit of resale value to your home. For instance, according to Remodeling Magazine, a bathroom remodel that costs $54,115 can up the resale value of your home by $32,385. Also, adding a master suite may cost $236,363 in the end, but it ups your home's resale value by $126,860. And, you can live the "suite life" in the meantime.
Why home equity loans are a good option
So when it comes down to it, determining the home improvement costs versus your home's value is all about your style preferences and what you can afford—which is what this article is all about. How do you afford the remodeling you want to do?
Home Equity Loans are a top choice that people turn to when starting home improvement, value-related projects. Because these projects can improve your equity over time, lenders are often happy to extend a home equity loan when they understand the nature of the home improvement projects you want to undertake. There can also be tax breaks depending on how you use the loan, flexible terms and good interest rates with home equity loans.
Look out for unexpected surprises
There are some financing extras to consider: One common problem—home improvement project may cost more than you expect. Make sure you do your homework on the existing condition of your home and remodeling costs estimates. Some of the issues that could increase the cost of your home improvement project include:
- having a larger home
- having an older home
- remodeling permits
- unexpected repairs
To make sure that you have enough cash to cover any cost increases or surprises, a home equity loan might be a good bet. Check out a Discover Home Loan and its flexible terms—one way to finance projects and see your home become more valuable to you and your family.
In the end, home improvement costs depend on your home and how fancy you want to get with your update. To get more ideas on what to focus on, estimated costs and how to pay for updating your home, view our infographic "Home Improvement Costs and Financing."