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In this modern world, having a smart and secure home has become a necessity rather than a privilege. As technology grows, there is a spike in the invention of ways to make your home smarter and more secure. Such devices include closed-circuit television or CCTV, alarms, sensors, smart locks, smart lights, and smart home hubs.
However, they are not cheap and may cost more than you think. You may have to look for other financial sources to afford such upgrades. Yet, if you invest in these secure and smart technologies, it may make your living smart and secure. This makes the money you invested worth it.
If you are now geared towards investing in your home security but still lack the financial source, below are ways on how to finance for a smarter and more secure home.
Mortgage refinancing is a process where the homeowner with an existing mortgage takes another mortgage for a lower interest rate. The money that is borrowed from another lender will then be used to pay off the existing mortgage.
For example, if you have an existing mortgage for $100,000 with a 10% interest rate from Bank A, you can take another mortgage for $100,000 with a 7% interest rate from Bank B. The money that you have received from the mortgage from Bank B will then be paid to Bank A. This means that you have no further obligation to pay Bank A. You will then save the 3% difference in the interest rate.
You can then allocate that saved money for home improvement. In this way, you have saved money while making your home safer and smarter.
If you don’t have something valuable that can be handed over as collateral, it might be wise to go for personal loans. As an alternative to using home equity, personal loans are easy to apply for as long as you have excellent or good credit. Having bad credit may hinder you from getting the personal loan that you want.
If you have already decided to take personal loans to finance your home safety, it might be wise to check CreditNinja installment Loans. CreditNinja offers such loans with a simple borrowing process and no hidden fees. You can also have flexible terms and reliable financial support.
Home equity line of credit or HELOC is a type of loan where the lender decides to lend a maximum amount of money in a short span of time. The collateral for this type of loan is the equity of the borrower’s house. HELOC has been the saving grace for many borrowers in terms of medical use, home improvements, and education. Because home is the most valuable asset of some consumers, HELOC is sparingly taken.
What’s good about having a line of credit is that you can easily manage what you spend. If you think that you can still spare your equity to make your home smarter and more secure, it is best for you to take a home equity line of credit. However, you need to strive to pay your debt on time, as lenders will repossess your equity if you fail to pay up.
A home equity loan or a second mortgage functions just like a home equity line of credit. The only difference is that instead of getting a line of credit, you get a lump sum cash. The collateral of such a loan is still the equity of your home. The amount that you can loan is based on the difference between the mortgage balance due to the homeowner and the current market value of your home.
However, having the cash physically is risky. Not only it is prone to losing, but it may also be subject to impulsive buying. If you think that you are not an impulsive buyer and you can manage your money well, go for home equity loans.
You can finance the things that will make your home smarter and more secure by using credit cards. Depending on the agreement between you and your lender, you can have the maximum amount that you need or even more.
Rewards are also given for every dollar that you spend using your credit card. In this way, you can gain rewards from purchasing expensive home security gadgets.
The best way to pay for your home improvement without worrying about incurring debt is saving money to pay for it. You can always opt to do multiple jobs as your financial sources, as long as you know how to manage your time, and you know how to prioritize things. Make sure that you can still pay for your daily expenses while saving money.
Having a smart and secure home is worth the money that you pay for it. As it is a security need, it should always be one of the priorities that you need to provide. There is nothing wrong with borrowing money to have such a home. As long as you know how to pay for it, you can turn your debt into needed home improvement.
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