How to Pay for Your San Diego Home Renovations

San Diego, California, is one of the most desirable cities to live in the USA, thanks to its pleasant weather, breathtaking beaches, and rich cultural heritage. However, owning a house in America’s Finest City can be costly, especially when it comes to home improvements.

Whether you want to do a bathroom renovation or landscaping, the cost of home improvements in San Diego can swiftly add up; if you’re lost and don’t know how to finance your renovation project, fret not since several mortgage options are available.

In this article, we’ll teach you how to finance your home remodel in San Diego and help you pick which mortgage option is the most suitable for your needs.

Home Improvement Loans

A home improvement loan is an unsecured personal loan that is typically offered by banks, credit unions, and online lenders. This type of loan doesn’t require collateral, and your interest rate and qualification are based mainly on your credit score. Funding is fast, and some mortgage lenders deposit money directly into your account in as little as one day after you agree to the terms.

Compared to home equity loans or HELOCs, home improvement loans typically have shorter repayment timelines, lower loan amounts, and fewer fees. Home improvement loans usually offer a maximum term of 12 years and have lower loan amounts, typically up to $100,000 at most. This type of loan is ideal for small or midsized projects.

If you’re in the middle of finding the best home renovation loan, look no further since loan officers from Five Fifty Financial are here to help you secure the best mortgage deal available.

Home Equity Loan

Instead of taking out a HELOC, you can consider a home equity loan, which is also known as a second mortgage. With a home equity loan, you’ll receive a lump sum of cash that you can repay over several years in regular fixed monthly payments.

Compared to home improvement loans, home equity loans have much higher borrowing limits and repayment periods than home improvement loans. They are also secured by your house, meaning you have to put up your property as collateral.

Unlike HELOCs, you won’t need to worry about fluctuations in the market when you secure a home equity loan. Once you lock in your fixed interest rate, you’ll make the same monthly payment for the duration of your loan.

Home equity loans are ideal for medium to large projects. Determining how much you need before borrowing is essential, but with a home equity loan, you can borrow more cash and have more time to pay back the debt.

Conclusion

Proper planning is essential when it comes to financing a home renovation project. Homeowners must thoroughly assess all the available loan options and choose the best financing path that suits their project and current situation.

Ready to renovate your beloved home? Work with Deanna Miller at Five Fifty Financial to finance your house renovation project today.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.