Even if you don’t qualify for a home equity loan, your house may be a wonderful resource for generating the money you need to fund a renovation you desire — as long as your kitchen demands quartz countertops but your wallet insists on laminate.
To make room in your monthly budget for a remodel, consider these 6 ideas for generating extra money from your house; some of these suggestions may also help you reduce your home’s monthly expenses:
1. Take in a lodger.
Getting a short-term roommate might assist you in accumulating the funds necessary to renovate. You may locate someone by posting a notice on one of your social networking sites or, alternatively, placing an ad in the local newspaper.
2. Renting your home when you’re away on vacation.
When you go on vacation, you may get paid to stay where you’re already living, especially if your house is near something tourists frequent. There are free sites for posting rentals (such as Craigslist) and sites that charge several hundred dollars a year, such as VRBO.com.
Check with your insurance provider to see if your house owners’ coverage includes you if you rent out your property for just a week or two and whether you’ll need a landlord’s policy.
3. Make your home a billboard.
Brainiacs From Mars is searching for locations to transform into billboards, and their wacky marketing department is on the lookout for homes to advertise on. Brainiacs will pay your mortgage instalments for a year if you, your homeowner’s association, and local zoning rules allow them to paint the outside of your home in unusual hues with a choice advertising message. That should cover the expense of a new kitchen.
4. Quit paying private mortgage insurance.
It’s possible that you can cancel your private mortgage insurance now that home values have recovered in many real estate markets. Most mortgage lenders allow you to terminate your coverage if you have 20% equity (for example, if your house is worth $100,000 and your loan is $80,000 leaving you with $20,000 in equity).
5. File an amended return.
If you didn’t qualify for a home-related tax deduction or credit, file an amended return for one that you missed.
It’s easy to make a common homeowner mistake, such as forgetting to deduct when you improve your house for medical reasons or because it was damaged in a storm. It only takes a couple of minutes to change your return and receive a refund to help pay for your renovations.
6. Check with your utility company for incentives or special financing.
Utility companies are pushing homeowners to increase the energy efficiency of their properties. Some will give you money or rebates to help you make energy-efficiency improvements, then let you repay the loan over time as part of your monthly utility bill.