As your home ages and receives wear and tear from exterior weather, your children, pets, or other family members, it will need improvements and maintenance to keep it in good condition and preventing problems from disrepair. Many homeowners find that paying for the repairs is most of the battle, as they can be quite a large expense. If you aren't able to save up over the long run to be able to pay for repairs and maintenance, here are some ways you can finance your home repairs to make sure they are taken care of.

Home Equity Credit Line

One way to finance and pay for home repairs is to use some of your home's equity with a home equity line of credit or HELOC. This method is smart because you borrow against your home's value to improve on your home's value. Talk to your mortgage broker about what options are available and interest rate for opening a home equity line of credit.

This credit line is separate from your mortgage loan, so you can pay it off more quickly than your mortgage. Having a line of credit can be used again once you have paid it off, so it works similarly to a credit card.

One of the best perks to using a home equity line of credit is it can help lower your tax liability. Just as interest paid on your home mortgage is tax deductible, interest paid on your home equity line of credit is also tax deductible, so you will lower your taxable income by using this method. 

Low Rate Credit Card

Another option for financing repairs to your home is with the use of a low-interest credit card. There are many credit cards available today, and depending on your credit rating you can get a card with a low interest rate. Many cards even have a introductory period where you are charged no interest, which can help you pay no or less interest. 

Be sure to only apply for a credit card that has no annual, application, or yearly maintenance fee. And keep in mind the interest is not tax-deductible. 

Signature Loan

If you are not able to apply for a HELOC or get a credit card, check into applying for a signature loan with your bank. This type of loan may have a slightly higher interest rate than a HELOC or a premium-rate credit card, but it is a ways to finance your necessary maintenance without having to use anything for collateral for the loan. Many banks will approve their banking customers for a signature loan based on their history of doing business with them.

Use these tips to help you finance necessary repairs to your home. Check with places like Rio Grande Credit Union for your financing options.

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