Budget is a significant factor when it comes to remodeling a home. Aside from your project’s estimated cost, you also need to be prepared for unexpected expenses.
One of your leading bathroom remodeling contractors, Advantage Contracting, discusses a survey from Discover Home Equity Loans that revealed most homeowners are unprepared for their renovation costs.
Home Improvement Plans
Direct banking and payment services company, Discover Home Equity Loans, recently conducted a survey to determine whether homeowners are unprepared for the costs of their home improvement project.
At least half of the respondents have plans on renovating their homes within the next year or sooner. Forty percent of homeowners are planning on remodeling to increase their properties’ value. The top list of home improvement projects includes kitchen and bathroom remodeling.
According to the survey, 64 percent of respondents assume that their project will cost below $15,000. However, Remodeling.net says that the average cost for bathroom remodels ranges between $ 19,000 to $61,000.
Only 25 percent of respondents have sufficient funds to cover their project’s costs. Twenty-seven percent have around a quarter of the total project cost. At Advantage Contracting, we offer different financing options through Greensky Financing to help you cover your renovation expenses. These options from your local remodeling contractor can lower your APR or remove payments for up to a year.
“Home improvement projects can quickly add up and oftentimes cost more than someone anticipates,” said PK Parekh, Discovery Home Equity Loans’ vice president. “Which is why people should be financially prepared and determine which payment method makes the most sense within their own financial situation.”
According to the survey, 34 percent of homeowners prefer to pay in cash for their project and 23 percent prefers to use a credit card.
Moreover, 46 percent of participants had more than $100,000 of their equity in their home they could use for financing their project. However, only 38 percent have plans on taking advantage of equity. This includes home equity line of credit, home equity loan and a cash-out refinance. Twenty percent of millennials said loans on their home equity would be a good payment option.
For flexible financing options for your home improvement project, choose Advantage Contracting. We are one of your most trusted local bathroom remodeling contractors. Our team also specializes in home additions and kitchen remodeling. Call us at (862) 292-0003 or complete our online form for a free estimate. We serve homeowners in Wayne, Kinnelon, and Wycoff, NJ.