You deserve what you want right now, especially when it comes to building or buying your dream home. Immediate gratification – that’s the American way. How do you decide if that makes sense and how do you make it happen financially?
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about how to finance big or small home projects. There’s always something to do. How do you fund your home projects, renovations, additions, and improvements?
- Typical Thought Process: Be aware to avoid cultural pulls and temptations
- Reasons for Financing: Low interest rates, good investment, emotional drivers
- Catalyst: When a reasonable small home project turns into an illogical big one
- Solution: Create/consult financial plan, priorities, values, goals to be objective
- Financing Factors:
- What’s your cash flow situation?
- How much equity is in your house?
- What is your debt-to-income ratio?
- Ways to Finance Home Projects:
- Hardest: Save up or invest cash
- Easier: Home equity line of credit or construction loan
- Easiest: Home equity loan, cash out refinance, personal loan, credit cards