How to Cover the Cost of Home Repairs: Tips for Homeowners

 

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As a homeowner, the possibility of home repairs and maintenance expenses is always looming. In most cases, it’s impossible to predict when these expenses will occur, which can leave you feeling overwhelmed and financially unprepared. However, there are various ways to cover the cost of home repairs, and this article from the Puttogo Global Group aims to provide insight into some of these avenues. Keep reading to learn more.

Consider A Home Improvement Loan or Line of Credit

These types of loans are specifically designed to help homeowners cover the cost of significant home repairs and renovations. You can approach banks or credit unions for these loans to obtain the funds you need to address any pressing home repair issues. The advantage of these loans is that they are relatively easy to obtain and have lower interest rates than credit cards or personal loans.

Look Into A Reverse Mortgage If You’re A Senior Homeowner

For senior homeowners aged 62 or older, a reverse mortgage can help fund home repairs. This type of mortgage allows you to tap into your home equity, with the funds available in the form of either a lump sum, monthly payments or as a line of credit. The loan is only paid back when you sell the home or pass away.

Consider A Personal Loan From a Bank or Credit Union

Banks and credit unions offer personal loans that can be a quick fix when you need to cover an urgent repair. Personal loans are available for both secured and unsecured purposes. If you own a home, you can register it as collateral for a secured loan which attracts lower interest rates.

Look into Government-backed Loan Programs Like FHA Title I

The Federal Housing Administration has created the Title I program to make home improvements more accessible and affordable. Borrowers are eligible to borrow up to $25,000 per loan through the government-backed present scheme. This is beneficial when homeowners require monetary help for improvement projects that may be not available from other sources in their local area. Furthermore, these loans can be used for protective repairs, remodeling, restoration and more—when approved by an FHA lender.

Purchase A Home Warranty To Cover Unexpected Repairs

Purchasing a home warranty can be a wise decision to cover unexpected repairs in your home. A common question is, “What does a home warranty cover?” Typically, a home warranty is a service contract that covers the repair or replacement of important home system components and appliances that break down over time. This can include major systems like your plumbing, electrical, heating and air conditioning, as well as appliances like your refrigerator, oven, or washer and dryer. A home warranty can provide peace of mind, knowing that if something breaks down, you’re not left facing a large, unexpected repair bill.

Get Guidance With Modern Technology

Smart thermostats bring a host of benefits to your home’s heating and cooling system. They allow for greater control over your home’s temperature, with the ability to adjust settings remotely via a smartphone app. This means you can optimize your energy usage even when you’re away from home, leading to potential cost savings on your utility bills. Smart thermostats can also learn your habits over time and automatically adjust settings for maximum comfort and efficiency. Additionally, they can provide real-time energy consumption reports, helping you understand and manage your energy usage better. 

 

However, like any tech device, they may occasionally encounter issues. Keeping troubleshooting resources handy, such as user manuals, online forums, or customer support contacts, can ensure that any problems are resolved quickly and effectively, keeping your smart thermostat functioning at its best.

 

Home repairs are part and parcel of homeownership. However, there are numerous ways to cover the cost of these repairs. By considering these tips, you can rest easy knowing that you have a plan of action should any unexpected repairs arise. Remember to evaluate each option carefully to determine which one works best for your circumstances. Finally, don’t panic when faced with home repair needs. Instead, take a deep breath and go through these tips to get started.

 

For residential real estate and relocation services to the Atlanta area, contact the Puttogo Global Group today!

 

Article by: Sharon Wagner