The foundation might not be the most attractive part of your home but it is crucial. A crack in the foundation can affect the whole building. Unfortunately, many homes including the best-designed ones face foundation problems at some points.
These problems are typically caused by environmental factors and they pop up unexpectedly.
Fixing the problem is always urgent and costly. Depending on the level of damage, fixing foundation problems can range from hundreds of dollars to tens of thousands of dollars.
If you’re faced with such a problem, financing the emergency home foundation repair becomes paramount. Making wrong financial choices can leave you with a bigger financial problem after the repair.
To make financing your foundation repair convenient, we’ve outlined these 5 tips.
Home Equity Line of Credit (HELOCs)
Home Equity Line of Credit is the best means of financing your repair. It has the lowest interest rate and offers revolving credit which means you can borrow as needed up to your limit.
To borrow, you need to have enough equity to qualify. The biggest problem with HELOCs is that your home is used as collateral and you can lose it if you don’t payback.
You can also get payday loans in Canada.
Cash-Out Refinance Loans
Usually, the cash-out refinance provides your current mortgage with a new, bigger loan offer. Somehow this will put more money in your pocket from the difference. The loan will help in financing your foundation repair.
This method of financing home repair is popular as the rise in your home equity and your original mortgage balance can have an impact on the cash-out. It could give you large enough to solve major foundation problems. The worrisome part of this is that your loan span will increase.
Saving up Emergency Funds
The easiest and safest financing option is your savings. This method will allow you to fix the problem without leaving you with a large sum of loans or credit card bills to pay back.
But if you don’t have enough money saved, you can resort to the other options below.
Personal Loans: With a good credit score, you can contact your bank or lending institutions for personal loans for home repairs. It gives you freedom of using the funds as you please but often comes with a higher interest rate compared to HELOCs.
Credit Card: You can charge directly from your credit card if the foundation repair is minor. Some credit cards are interest-free in the first few months and you can earn cashback rewards.
But using a Credit Card for major foundation repairs can be risky. If you can’t pay back before the introductory period or billing cycle ends, you may be paying high-interest rates much higher than other means of financing foundation repair.
Bottom Line
Financing your home’s foundation repair needs planning. It is advisable to consider the options at your disposal before picking the one that suits the problem and your financial condition.