Is your basement unfinished or not meeting your vision? Do you want to make it a more functional space, but don’t have the cash for all of the materials and labor? If so, then read on! This blog post will give you an overview of financing options that are available to homeowners who need help with their basement remodeling project.
The Average Cost of a Basement Remodel
The average cost of a basement remodel in the United States is $35,000. This is a bit more than for finishing a basement since remodeling means eliminating what is already there while finishing means starting from scratch. As a result, you need to pay for demolition and removal of the previous basement finishing.
Of course, there are lots of factors that can increase or decrease the cost. Still, even on the lower end of around $12,000, the cost of a basement remodel or finishing isn’t easy to pay for outright.
Financing Options for Your Basement Project
There are several ways to finance basement projects, and it’s a good idea to look into all of them before you decide which one is best for your situation.
Home Equity Line of Credit (HELOC)
One option that many homeowners choose in order to pay for their basement finishing project is a home equity line of credit or HELOC. This is a loan that you can draw from as needed, and the interest rate will be based on your credit score and other factors.
Another option for basement finishing financing is to take out a personal loan, which may have better rates than those for personal loans depending on how many assets you have to use as collateral.
Home Equity Loans – Better for Some Than HELOCs
Some homeowners find that home equity loans are a better option than the basement finishing financing options of taking out a personal loan or getting a line of credit because they can borrow larger sums and receive more favorable interest rates.
Financing Through Your Contractor
Another basement finishing financing option is to finance it through your contractor, who may offer special rates for cash payments. Just make sure that you’ll be able to pay the credit card charges each month before you agree to this type of arrangement.
Ultimately, there are quite a few ways you can make the cost of basement finishing or remodeling more accessible for you. However, which basement financing option is best will depend on your finances. If you need a bit more guidance, we are happy to help. As we offer basement remodeling in Alpharetta, we know a lot about local options for financing.
For more information, read: Basement Remodeling Ideas for Those on a Budget.