Home Improvement – How Much Can You Afford?

Home improvement is the sale of building materials, appliances and decor, as well as the services provided by contractors and tradespeople. It is a vital part of the economy.

Increasingly, homeowners are spending money on their homes as a way to make them feel more comfortable and increase their property’s value. That includes small improvements that help a home appear updated and appealing, such as new paint and carpet.

It also involves major renovations that add significant value to the home. It can include adding a porch, garage or a deck.

A recent report from Real Estate Witch found that Americans spent an average of $3,890 on home renovations in the past year. But while it is a good idea to update your home, it’s important not to overspend.

How much can you afford?

If you need to spend a lot of money on a major project, consider a home equity loan. This type of loan is repaid over time through monthly payments, typically with a fixed interest rate.

You can also get a personal loan, but it may be more expensive than a home equity loan. Be sure to examine your credit score and other financial information carefully before applying for a loan.

For those on a tight budget, consider smaller upgrades that can pay off in the long run. For example, a new front door can add value to your home and help it stand out among neighbors. Power washing the outside of your house can spruce it up, too.