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HOME&GARDENSHOWCASE • ADVERTISINGSUPPLEMENTTOTHERIVERVALLEY&OZARKEDITION/THREERIVERSEDITIONOFTHEARKANSASDEMOCRAT-GAZETTE SUNDAY,FEBRUARY23,2020 5VV
Homeowners may find that the more expensive renovations require them to secure some type of financing.
MONEY MATTERS
6 OPTIONS FOR FUNDING YOUR NEXT HOME-IMPROVEMENT PROJECT
Before starting a home-improve- ment project, either on one’s own or with the assistance of a profes- sional contractor, homeowners
must first consider the costs involved. According to the home-improvement re- source HomeAdvisor, more than one-third of homeowners do not understand what hiring a professional will cost, then cannot successfully budget and secure financing once they have set their sights on a reno- vation project.
HomeAdvisor states that some of the more popular projects, such as remodel- ing a kitchen or bathroom or building a deck, can cost, on average, $19,920, $9,274 and $6,919, respectively.
Homeowners may find that the more expensive renovations require them to secure some type of financing. Those who have never before sought such financing may want to consider these options.
CASH-OUT REFINANCING
With cash-out refinancing, a person will begin the mortgage process anew with the intention of paying off the current mort- gage balance, then taking out additional funds for other purposes. Cash-out refi- nancing is a way to tap into a home’s ex- isting equity for use on improvements or other expenses, such as college tuition.
HOME-EQUITY LINE OF CREDIT
The financial experts at Bankrate in- dicate that a HELOC works like a credit card, with the house as collateral. There is a credit limit, and borrowers can spend up to that limit. The interest rate may or may not be fixed. However, the interest may be tax-deductible if the financing is used to improve, buy or build a home.
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Melinda Graves-Brown