From Applying for A Green Loan to Going for an Automatic Mortgage Renewal

If you’re looking for ways to find cash to renovate your home, you will find this ultimate guide useful. We have run through all the tips and tricks that you can try, like refinancing your mortgage, applying for a second mortgage, or even using for a green loan. Read ahead if you want to learn more.

1. Get a Green Loan

Depending on the renovation that you want to do, you might be able to fund it by going for a green loan. They are special loans that lenders offer for solar panels and other projects to make homes more eco-friendly. What makes these loans so special is the fact that they come with low interest.

Quite a few government institutions offer green grants to make properties more eco friendly too. But it can be a headache to apply for these, and you would need quite a bit of documentation as well.

2. Utilize Your Savings

If possible, I would suggest that you try and pay for the renovations from your savings. You would not have to pay anyone back, and also, you won’t have to worry about high interest rates either.

You can think of tapping into your savings as an investment, as you would be renovating to improve your property value at the end of the day.

3. Get a Second Mortgage

If the renovations are extensive, you may have to take a second mortgage to pay them off. You should do your research about the lender that you will be working with as some offer better interest rates than others.

Although you can borrow very large sums when you go this route, I would advise you to be mindful of the amount you apply for. You would end up with quite a large loan in the end otherwise.

4. Refinance Your Mortgage

Instead of applying for a second mortgage, you can refinance your home loan. The bank or finance company would look at the amount of equity you have in your property and then buy it. You will get a large cash sum in the end.

If you’re wondering, is it a good time to refinance, this all depends on the current interest rates and how much equity you have. I would recommend that you go for it if it’s quite a bit of equity.

One of the pros of refinancing is that you will get automatic mortgage renewal.

Final Thoughts

There are many ways that you can fund your home renovations. The best suggestion would be to pull the funds from your savings as you would not have to worry about paying anyone back, or having to pay interest either. But you can also refinance your mortgage. In case you want to know whether is it a good time to refinance, you should know that interest rates are not that high.

Hopefully you found everything that was discussed useful.

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