The Man Cave, Outdoor Kitchen and more…

Now that you are itching to dive into that kitchen or bathroom remodel, you want to create a mancave, you are ready for an outdoor kitchen, you could use some extra plants and you could use some new windows and a new roof.  All good ideas, but the trick is how to pay for it? There are options out there but some are better than others.  Financial Planners Eric Toya and Natalie Do with the Financial Planners Association of Los Angeles, a non-profit group of certified planners, share insight from Home Loans, to Line of Credit, to those Home Improvement Cards you can get at big box stores.

Listen In:
Finding Cash to Fund Your Home Improvement Dream

Link:

www.fpala.org

Upfront costs

Approval process, etc.

Collateral required

Tax benefits

Tax consequences

Payment terms

Credit cards

None

Simple

None

None

None

Monthly; variable interest rate

Store credit cards

None

Simple

None

None

None

Monthly; variable rates

HELOCs

Yes;
often waived

More complicated

Yes

Yes

None

Monthly; variable rates

Home equity loans

Yes

More complicated

Yes

Yes

None

Monthly; fixed rates

Refinance

Yes; often significant

Most complex

Yes

Yes

None

Monthly; fixed rate

Title I

Yes

More complicated

None up to $7,500; required for higher amounts

Yes

None

Fixed rate

401(k)/IRA

Possibly

More complicated

None

None

Possibly

Varies; minimum once per quarter

Life insurance borrowing

Possibly

More complicated

Yes

None

Possibly

Varies

Private loans

Possibly

Varies

No, generally

None

No

Monthly; fixed rates

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