Fix Your Home Improvement Plan
Why it’s a good idea
Even new homes are going to need repairs; things just have a way of popping up. Try not to fall into the trap of thinking you won’t need money for repairs or maintenance for a while because your home seems fine now. That can really come back to hurt you if you later need to take out costly loans or put repair bills on a credit card.
Also remember that performing routine maintenance now can save you a lot of money since it can help you to avoid the huge problems that neglected maintenance can lead to down the road.
Plus, making upgrades to your home can help increase the value of your home, which will be crucial when you want to sell the home or take equity out later.
How to estimate your upcoming needs
A common shorthand way of figuring home repair needs is to put at least 1% of your home’s value each year toward repairs and maintenance. For example, if your home is worth $150,000, you should try to put $1,500 year, or $125 per month, into savings for home upkeep.
Areas to give special attention
The 1% Rule is a handy guideline, but if your home has a problem with its roof, water drainage, heating/cooling or foundation, you should be putting 3-4 times more money into savings to deal with it.
What you can do
If you’ve already done a spending and savings plan, and still find that you need additional funds to cover the home improvement costs, looking into a Home Improvement Loan can be an option for you. At OnPath Federal Credit Union, you can enjoy several flexible, secure financing options for your home improvements without using your home as a collateral. Learn more about our home improvement loans here or contact a loan officer at 504.733.7274.