Is it time to stop thinking about how rough your deck looks and how much time you need to put into maintaining it? Are you ready to create your own at-home vacation zone but don’t want to spend all your hard-earned cash? If you answered yes to these questions, it may be time to consider financing your Hudson Valley outdoor living project. 

With an average price tag of $55 per square foot, decks and other outdoor living spaces can be a substantial investment. While you can choose to pay for your project with cash or savings, you may not want to invest everything that you’ve saved into your project. Fortunately, you don’t have to! There are many ways that you can finance your outdoor living project and ease the strain on your pocket. If you’re interested in adding a new outdoor living space to your Hudson Valley home but aren’t sure how to pay for it, check out these some of these financing options:

Personal Loan 

Personal loans are paid to individuals through a bank, credit union or other financial lending company. The money is paid as a lump sum and interest rates vary based on your credit score. These loans make sense for new homeowners who don’t have enough equity built up to quality for a home equity loan or HELOC, or who don’t want to refinance. They also work well for small projects or people with strong credit. 

We now offer new financing options that will allow you to start your project today! Pre-qualify in just 60-seconds with no impact to your credit score to learn about our rates and monthly payment options. Simply fill out this easy prequalification form to get started.

Home Equity Loan 

A common way to pay for home improvement projects is through a home equity loan, which is like a second mortgage. If your home is valued at $250,000, but your mortgage balance is $100,000, that gives you $150,000 of equity you can borrow against. These loans might be easier for people with poor credit to qualify for because it uses your home as collateral. It also can give you access to a large lump sum of money at low-interest rates. However, if you don’t pay the loan back, you risk home foreclosure.  

Home Equity Line of Credit

Another option is a home equity line of credit (HELOC). Instead of getting a lump sum (like with a home equity loan), a HELOC gives you a maximum amount you can borrow, aka the line of credit. Homeowners can borrow multiple times against the line of credit, and make smaller payments to start out. Keep in mind that interest rates are usually variable, and lenders can freeze or cancel your line of credit if your home’s value drops or your financial situation changes. 

Cash-Out Refinance

A cash-out refinance replaces your home loan with a new mortgage for more than your previous loan balance, and gives you the difference in cash. (You have to have equity built up to get the difference in cash.) If you’re looking to refinance at a lower interest rate and could also use some cash for home improvement projects, this could be a good option. It’s typically tax-deductible, and you can also use the extra cash to pay off other debts, like high-interest credit cards. Just like the home equity loan and HELOC, you’re using your home as collateral, so you risk foreclosure if you can’t make payments. You’ll also have to pay closing costs. 

Home Mortgage Refinance Option

A mortgage refinance replaces an existing loan with a new mortgage. This can reduce your loan interest rate and lower monthly payments, while also giving you access to your home’s equity. 

Second Mortgage Refinancing

Just like a home mortgage refinance, you can consider refinancing your second mortgage. This could lower your interest rate, or let you consolidate both mortgages into one. Refinancing the second mortgage may be harder than the first one because it’s a higher-risk loan. 

Credit Card

You can also use credit cards to pay for home improvement projects but do your research. Some credit cards may offer 0 percent APR for the first 15 to 20 months, or provide cashback that helps you recoup some of the cost. Be sure to read the fine print, and stay current on your payments, or interest rates can quickly jump into the double digits. 

Choosing the right financing option for your outdoor living project can be challenging, but you don’t have to stress! Take the time to do your research and learn more about each option until you feel comfortable enough to make the best decision for you. With all of the options available, there are plenty that will allow you to create the ultimate outdoor space while taking it easy on your wallet.