A basement, no matter what it’s current state might be, has huge potential. From using the space to store essential belongings to turning it into a spare room for guests, there are multifarious ways in which you could boost your property’s overall value with a basement remodel. After all, you’re putting another liveable area in your house.
Don’t have the funds all in one place? Don’t worry, you can easily create the basement of your dreams with basement remodel financing . This type of loan is one of many options for homeowners who require some form of financial aid to assist them in revamping a space. Basement home improvement loans can be relied on to expand the size of a basement, increase privacy or even create a playroom for keeping the kids occupied. Before you get lured in by ‘irresistible’ loan offers, remember that every loan company will offer a different interest rate and payment plan.
Talking to a local lender will help you figure out how to apply for the funds and receive them. What’s more, a financing plan of this kind will teach you how to budget adequately and afford the finer things in life, without putting strain on your bank balance. So, before you apply for financing, take a few moments to read the following information pertaining to basement remodel financing.
What You Need to Know About Loans for Basement Renovations
Deciding if obtaining a loan is the right idea or not can be a tricky decision to make. If you have the cash, pay it in cash! If you don’t have the cash (but want to get the job done and feel financially stable to do so with financial aid in the form of loan repayments), lending is a suitable idea. This is especially true if you have managed to accumulate some extra funds on the side, which can then be combined with your chosen financing options for lower monthly instalments.
Refrain from refinancing your mortgage and using the cash-out option as an alternative to loans for basement renovations. The closing fees will typically be higher than the interest rate of a home improvement loan. Spend adequate time researching the comparable property market to determine which kind of basement renovation will earn the best return on investment.
Ways to Revamp a Basement for Increased Property Value
Are you ready to add a completely new element of functionality and design to your home? The thought of a basement renovation really makes the mind wander. Just think of all the possibilities that come with using loans for basement renovations!
Here are a few ways to turn an underground space into a haven for relaxing, entertaining, educating, exhibiting and more:
- Underground Lounge – Introduce comfortable furnishings and dim lighting to create a laid-back ambiance that can be enjoyed as a lounge or private space.
- Kid’s Playroom/Library – Let the young ones frolic in a brightly-colored basement with soft carpeting and bean bags scattered across the ground. Make room for a bookshelf and you could even kick back with your head buried in a Steven King classic, while the sprogs entertain themselves.
- Indoor Theater – Fed up of fighting over the television controller? Perhaps you are craving a space where you can put your feed up with a bowl of popcorn, minus the trip to a public theater? With a basement revamp, all you need is an oversized screen, ample seating and the essential equipment, like a projector screen/machine, ambient lighting, etc.
- Spare Room – Properties with a larger number of rooms tend to sell for more money. Plus, they offer convenience if you ever have to express your hospitality to an unexpected guest.
- Private Gym – Rather than investing in a gym membership, get into shape from the comfort of your own basement-turned gym. You could pay back remodel financing quickly if you utilize the gym for business purposes (legally, of course).
How to Afford Basement Remodel Financing
There’s no point in letting yourself feel overwhelmed by the costs associated with basement remodeling. Rather, prepare yourself by approaching the idea in a realistic manner. Unpreparedness can increase the risk factor of facing financial difficulty later down the line. Take your time, shop around and don’t feel pressured into making a decision.
Sit down and ask yourself the following questions to ascertain whether or not this is a wise move to make:
- Do I work/earn enough to repay basement remodel financing?
- Can I cut down on my outgoings and save more money?
- Have I found the lowest interest rate offered by a genuine lender?
- Will I remember to set aside a monthly repayment amount?
Ideally, you should have answered “yes” to every single question. Should you feel slightly unsure about whether or not a loan is a good idea, consult with a financial advisor. This can be accomplished in confidence and it will enlighten you about your borrowing options.
Can’t I use home equity to cover the costs?
Yes, but there are disadvantages associated with doing so. Although home equity can be relied on as a back-up during times of financial crisis, once it’s gone, it’s gone. Loans with no equity are available from certain lenders. Usually, home equity loans will be offered with a fixed interest rate. Alternative loans will most likely have adjustable interest rates and although this means more money in the long-run, the payments are spread out, eliminating the worry of paying a lump sum upfront.