Are landscaping loans the best option for financing outdoor projects?

When I moved into my house, my garden was a mess of weeds and not much else. Because our house was a new build, we didn’t even have any grass.

I love spending time outdoors, so I knew I had to prioritize landscaping projects, but I quickly found out that creating a great backyard was expensive.

The good news is that there are many financing options for outdoor projects, including landscaping loans. The bad news is not that all of these options are smart choices.

If exterior projects are your top priority, it’s important to make good choices about how you pay for your new backyard. Here are all of your options so that you can find the right source of funding.

Landscaping loans and financing of outdoor projects

Options for homeowners financing outdoor projects include payment with savings, landscaping loans, personal loans, and home equity loans. There are advantages and disadvantages to each approach.

Use your savings

Paying with savings is often the best way to fund a backyard because you won’t have to pay interest on your improvements. But there are a few drawbacks.

First, the money you invest in improving your garden will not be available for other purposes (or emergencies), like paying down debt or investing for retirement. While investing in backyard improvements can increase the value of your home, only certain exterior projects have a positive rate of return.

Installing a fireplace, for example, costs about $ 4,500, depending on the Impact report of the renovation of the National Association of Real Estate Agents, but you’ll only get about $ 3,500 back when the time comes to sell.

Second, saving enough for large projects can be time consuming. For example, our goal was to install a swimming pool. We paid for it in cash, but only had it installed after spending five years in our house.

It’s frustrating to wait around when you want to enjoy your dream yard, but if you can be patient, you can enjoy the outdoor amenities without worrying about having bills (or interest) to pay.

Try a landscaping loan

Some landscaping companies offer in-house financing for large projects such as swimming pools. A company in our region will even finance the installation of a pond or a waterfall. There are also local and online lenders who offer dedicated home improvement loans.

If you can find a landscaping company offering in-house financing, it simplifies the process since you won’t have to work with a separate lender.

Lenders offering landscaping or swimming pool loans also know the cost of these projects and are more likely to lend enough money to pay for the work to be done. A general lender may have lower loan limits.

The big downside to landscaping loans is the fact that you’ll often be paying a lot of interest – with APRs of around 5-10% for creditworthy borrowers – making your project more expensive.

You can use our personal loan calculator to estimate the cost of your project based on the amount you borrow, the interest rate and the length of your term. You can also consult some of the best lenders for home improvement projects to find financing at competitive rates.

Consider a personal loan

If you are financing an outdoor project, you do not need to take out a specialized loan for home improvement or landscaping.

Personal loans can be used for any purpose, and there are many more lenders offering general personal loans than dedicated landscaping loans. You can buy personal loans from online lenders, credit unions, and community banks, as well as peer-to-peer lenders such as LendingClub.

The downside of using personal loans to fund a backyard project is that, again, you pay interest and the project will be much more expensive because of it.

If you’ve decided to borrow anyway, take the smallest loan possible and compare lenders carefully. Start your research by consulting some of the best personal lenders.

Get a home equity loan

If you have equity in your home, you can borrow against your home to pay for your back yard. But taking out a home equity loan is risky because your home is in danger if you can’t make payments.

Yet the rates of home equity loans are lower than those of most other types of unsecured debt because these loans are secured. There are also tax deductions for home equity loans if you itemize them.

Despite the risk of potential foreclosure, many homeowners decide that a home equity loan is preferable to a personal loan because of these advantages.

If you’re taking out a home equity loan, be aware that you may have to pay some costs associated with getting the loan, like paying an appraisal to make sure you have enough equity.

Many lenders won’t lend you if the combined value of your primary mortgage and home equity loan is more than 80% of your home’s value.

Comparison of financing options for external projects

When considering outside project finance options, here are some key things to consider:

  • Return on investment: If you don’t get the money you put into the project, borrowing is a bad idea, unless you have some cash on hand and plan to stay in your house for a long time.
  • Total cost of the project: How much you will pay in total. Add up the interest charges if you’re borrowing to make sure the landscaping upgrade is worth the total you’ll need to spend.
  • Most affordable financing: Don’t just look at the monthly payment, because if a loan has a longer repayment term, the monthly cost may be lower, although the total costs are higher. Also pay attention to whether lenders offer fixed rate loans, which stay the same for the life of the loan, or variable rate loans. An adjustable rate loan may have a lower starting rate, but the interest charges and monthly payments may go up or down.
  • Approval of loan amount needed: Lenders have different minimum and maximum amounts they lend. Select a lender who will approve you for the amount you need so that you can complete your project without borrowing more than you need to.

It’s also a good idea to consider doing part of the project yourself if it saves you money.

While we paid a professional to install our pool, we planted flowers and mulched ourselves, saving thousands of people by doing this work ourselves.

Sweaty equity helps lower the cost of projects, which means you’re more likely to recoup your investment – and you’re likely to profit more from the yard when you know how much effort you put into it.

Interested in a personal loan?

LendingTree allows you to compare the rates of several lenders by filling out a simple form. How is the student loan hero paid

How is the student loan hero paid

Student Loan Hero is indemnified by the companies present on this site and this compensation may have an impact on how and where the offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the market.

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Hero Student Loan Advertiser Disclosure

Student Loan Hero is an advertising-supported comparison service. The site presents products from our partners as well as institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

How is the student loan hero paid

How is the student loan hero paid

Student Loan Hero is indemnified by the companies present on this site and this compensation may have an impact on how and where the offers appear on this site (such as the order). Student Loan Hero does not include all lenders, savings products, or loan options available in the market.

Advertiser Disclosure

Hero Student Loan Advertiser Disclosure

Student Loan Hero is an ad-supported comparison service. The site presents products from our partners as well as institutions that are not advertising partners. While we endeavor to include the best offers available to the general public, we do not guarantee that this information represents all products available.

PRICES (APR) Amount of the loan
5.99% – 18.85%1 $5,000 To $100,000
4.37% – 35.99% $1000 To $50,000
5.94% – 35.97%* $1000 To $50,000
99.00% – 199.00%2 $500 To $4000
5.99% – 24.99%3 $5,000 To $40,000
7.99% – 29.99%4 $7,500 To $40,000

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