This post is in partnership with American Express Personal Loans.
I mentioned this in a recent post and wanted to mention it again: I am always SO interested to learn how people handle their finances, specifically how people fund their home renovation projects. Please tell me I’m not alone!
One of my favorite things to do is discover a new renovation story being shared on social media. I love how we can discover and follow home renovations all day! I eat it up and can’t get enough. The finance professional in me often wonders, how do people finance their home renovations? Did they take out a loan? Are they paying cash? I need to know, I’M SO CURIOUS!
Not only do I love discovering renovations on social media, I also love discovering them in person when I’m out and about. Every time I travel to Southern California (which is very frequent but also never enough), I notice every other home is being torn down and completely rebuilt. I live in the San Francisco Bay Area, and here the home renovation scene feels a little different. In the East Bay where I live, most folks are renovating within the boundaries of their current floor plans. Our neighbors, for example, are building a second story! We have plans to expand our home as well in the next few years, but have some smaller scale projects on our list before we are ready for a home expansion. It’s the smaller scale projects, like a bathroom remodel or HVAC upgrades, that seem fitting for quick-access financing options.
No two people have the same financial situation, and evaluating the best method of financing a renovation project for your home is a very personal and unique-to-you situation, BUT! given that I have a half-dozen major home renovation projects under my belt with many in our near future, as well as a long career in corporate finance, I do feel very comfortable sharing my perspectives on the financing solutions I have, and would, evaluate for tackling all the various projects we have completed or have in line for our home. American Express has asked me to join in on the conversation about financing those dream home projects and speak to the option of taking out an American Express Personal Loan. I’m happy to share my perspective!
Different renovation projects call for different means of financing, here are a couple of financing options my husband and I consider when budgeting and planning a new home project:
- Savings: we’ve funded a handful of our projects through savings, considering the upside is you don’t incur debt when paying for projects and materials in cash, yet the downside is the loss in any nest-egg or financial buffer you’ve built for your family.
- Personal Loan: consider a personal loan when needing to purchase materials for a project that are critical to a project’s timeline. Materials like tile or hardwood flooring, or even if you need a new roof! We would consider, for example, an American Express Personal Loan should we need a new roof or need to install a new water heater etc.
At the moment, we are simultaneously managing three projects in our home: 1) upgrading all electrical in our master suite including adding can lights to our ceiling, dimmer switches and the like. Electrical work can get expensive very quickly! 2) We are also installing a new front door as our current front door takes the strength of 1,000 men to open. 3) And don’t forget the new flooring we are installing in our master suite as well!
Here are a handful of other purchases and projects that would be perfect to execute with an American Express Personal Loan:
- Materials for remodel project, like tile for the bathroom
- Emergency plumbing or electrical upgrades
- Landscaping or exterior project in preparation to sell your home
- New roof
- Upgrading windows in home for energy efficiency
So if you’re an eligible consumer American Express Card Member, American Express Personal Loans may be a good place to start.
- They offer loans of $3,500 – $40,000 with no origination fee and APRs starting as low as 6.98% to eligible consumer Card Members1
- Find out more about eligibility and the quick application process, plus the full terms and conditions here.
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1 American Express Card Members must be pre-approved for a loan offer in order to apply. Pre-approved APRs and loan amounts are based on the Card Member’s creditworthiness and other factors. Pre-approved APRs will be between 6.90% and 18.97%, as of 3/2/2018. Not all Card Members will be pre-approved or receive the lowest APR or the highest loan amount.