08 March 2010

4 Possible Options of Financing Your Bathroom Remodeling Project

To finance your bathroom remodeling project, you might want to consider any of the following options as your source of funds: cash and liquid assets; credit cards; home equity loan; and, sweat equity.

Aside from a kitchen renovation project, a bathroom remodeling is one of the most popular projects a homeowner would want to go into. A bathroom, though small, will surely require some funding when it undergoes some form of remodeling. To ensure that you will be able to finish the entire renovation, it is important to check on the availability of your funds. Here are some ways of financing your project:

Cash and liquid assets

These are funds which are readily available for you to use. These are money from any of these sources: savings account, checking account, and even from bonds which are near their maturity. The advantage of using them is that you are not charged with interests and fees. Neither are you dependent on somebody else to to provide you with the financing. However, their are some disadvantages too. Using these resources will eventually deplete whatever reserves you have. In fact, most people don't have more than enough cash available to spend for some home renovation.

Credit cards

You have an option of using your credit card and paying off the whole amount by the end of the month, or you can avail of a zero-interest offer. The good thing about using your credit card is the quick availability of money. And, there are some cards giving out rewards too. The drawback of using credit cards is the higher interest rates being charged. Not to mention the false sense of security it gives. Making you feel as if you have enough money to spend for the remodeling when in truth your funds aren't enough at all which compels you to use your credit card.

Home equity loan

This is the classic way of financing your bathroom remodeling project. This is done by taking out a loan from the equity of your house. This type of loan can provides you with larger amounts of money to finance an even bigger home improvement. The interest rates are also lower as compared to those from credit cards and personal loans. But, if you continue in using the equity of your house, soon enough the aggregate cost of your house will reduce when you eventually sell such property. Since a home equity loan is capable of bringing huge sums of money, this may urge you to spend for things that are not even part of the project.

Sweat equity

This is a description used to describe a type of labor that a homeowner would perform on his own house. Asking a friend or family member to help out in the renovation is also considered as a sweat equity. Basically, the labor is free. Except that the materials still entail costs. Although, it is pleasing to have full control of the project, yet,  if we talk about learning curve, it is still much better to hire a few workers.

Indeed, a remodeling project can be one great home improvement endeavor. Not to mention the fun of incorporating your sweat equity. But, hiring a professional contractor would surely guarantee a more effective and fast completion for your bathroom remodeling. Just make sure to choose for a contractor near your place. If you are residing within the vicinity of the Atlantic Coast, a Delaware bathroom remodeling contractor is what you need.

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