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; |
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 |
