No other room in your home gets the attention that your bathroom does. Whether a separate shower would make it easier for the kids to get ready in the morning or you want to install that soaking tub you’ve always wanted, there’s no doubt that a bathroom remodeling project can increase your family’s quality of life.
But, before you take the plunge, you have to think about how you’re going to finance your family’s next bathroom remodeling project. Here are a few things you need to know before you get too excited and start looking at new tile.
You Can Compare Financing Options on Personal Loans to Find the Best Rate
A personal loan is one of the best ways to get bathroom remodel financing, but only if you find the right loan.
Depending on your credit and a wide variety of other factors, loan providers will offer a wide variety of interest rates on their loans. Finding the right rate can really pay off because it means you’ll ultimately pay less over the lifetime of the loan.
By comparing different personal loans, you can find the lowest rate, which means your bathroom remodel could be more affordable than you think. Check our Prosper personal loans for home remodels.
Compare Rates Between Financing Options
It’s a good idea to compare the rates on personal loans, but don’t forget to compare rates on a variety of other financing options:
- Home equity loan: Borrow a set amount of money from your home’s equity and pay it back in equal installments over time.
- Home equity line of credit: Use your home’s equity as you need it for a variety of projects, paying back the interest first until a larger balloon payment is due.
- Credit cards: If you choose the right credit card, you can keep your interest rate low and enjoy some additional perks, like airline miles and cash back.
- Reverse Mortgage: Opt for a reverse mortgage and borrow money against the value of your home. Use a reverse mortgage calculator to know how much you can borrow.
The best choice with the lowest interest rate may surprise you, so it always pays to consider all of your options.
Using Your Savings Probably Isn’t a Good Idea
You might be wondering where your savings come into play with all of this. After all, if you have the money upfront, shouldn’t you just pay for your remodel and skip the financing altogether?
Surprisingly, using your emergency savings account isn’t a good idea.
If you use your savings to pay for a remodel, you’re leaving yourself open to disaster. If a true emergency rears its ugly head, how will you pay for it? For example, if you lose your job or your home’s septic system suddenly needs to be repaired, you won’t have the immediate cash on hand to survive. It’s much better to leave your savings for true emergencies.
Your family deserves a new bathroom, but it shouldn’t be at the cost of your financial well-being. If you take the time to consider your financing options carefully, you can make sure you get the bathroom you’ve always wanted without breaking the bank.