Home security is one thing all homeowners need to prioritize at all times. But many neglect this whenever they do home upgrades. It is true that your home’s aesthetics, your family’s comfort, and convenience matter. But if you take home security for granted, you’re putting your home at risk.
This year, it’s time to make the necessary changes so that you can have that peace of mind, knowing that your home and family are safe. But then again, one challenge many homeowners face is the lack of funds to tackle some home security upgrades. Some homeowners would rather wait until they can save up enough money for the upgrade. But if you want to do the upgrade the soonest time possible, then here are some financing options you can choose from:
Credit Card Financing
Some homeowners prefer to use their current credit cards for their home security improvement projects. Others choose to apply for a new credit card so that they can enjoy all those reward points they can accumulate. You can get purchase protection and get an interest free loan. But there is a limit on how much and where you can use your card.
Personal Lines of Credit
For homeowners who don’t like the idea of putting up collateral just to get approved for a quick loan, then you can consider applying for a personal line of credit. One does not need excellent credit to qualify. The monthly rates are the same, and the interest you have to pay is decent. But many lenders offer this type of loan with an origination fee. The interest rates are often higher, and you may get penalized if you choose to pay it off early.
Home Equity Loans or Home Equity Lines of Credit
For homeowners with a considerable amount of home equity, you can choose to apply for a home equity loan or a home equity line of credit (HELOC). You only need to find a lender with the best mortgage rate in Salt Lake City to enjoy bigger perks.
With a home equity loan, you can get a lump sum of cash to fund your home security upgrades. You’ll pay for the same amount each month with a fixed interest for a set period. HELOCs work like credit cards. You can draw a certain amount and pay only for the interest on the amount you use. The interest rates are often lower, but these are variable or adjustable. This means that your monthly dues can change depending on the benchmark rate. Whether you choose a HELOC or a home equity loan, you can lose your home if you fail to pay off your loan.
Traditional Home Improvement Loans
There are two types of home improvement loans. With a secured home improvement loan, you’re using your home as collateral. The loan amount is higher. You pay it off between 10 to 15 years at a fixed and often tax-deductible interest rate. Failure to pay off the loan can lead to foreclosure. Unsecured home improvement loans, on the other hand, allow you to borrow a smaller amount since no collateral is needed. But interest rates are higher, and the interest is not tax-deductible.
As you can see, each financing option you have for upgrading your home security system has its perks and drawbacks. If you’re not comfortable with using collateral, then you can choose credit card financing or an unsecured home improvement loan. If you have enough equity, a HELOC, home equity loan, personal line of credit, or secured home improvement loan is for you. Know the risks and weigh in the advantages of each before you decide.