All homeowners want to improve their homes, but many are intimidated by the cost to do so. We at K&G Home Improvement understand and have compiled this page to help to make the best decisions for you, your home, and your budget. Please note that K&G Home Improvement does not offer financing. This section is for informational purposes only. At K&G Home Improvement we urge you to avoid making financing arrangements directly with any contractor, especially if they seek out your business. We also urge you to speak to multiple lenders and understand your options prior to borrowing. Please contact us for a list of recommended lenders in your area. Whenever you are considering home improvement is it important to consider three things.

1. How long do you plan on living in the home?
If you are planning on living in your home for the foreseeable future, you should look at any investment differently than if your plans are to move or sell. If your plans are to stay in the house indefinitely your concern should be to make the home a place that you enjoy. Paint it and decorate it to your tastes. Spend more for appliances that not only look good, they will last and will be energy efficient. Don't disregard improvements that will not add significant value to the home, if they will bring you and your family enjoyment or comfort. Finally don't wait forever to fix it up. Remember the sooner you make the improvement the sooner you can enjoy it.

2. Will I recoup my investment?
With some improvements you can feel and see the effects immediately, but with others the effects are less tangible long term benefits. Also do not discredit your enjoyment, you can recoup the investment with convenience or enjoyment as well as financially. Some examples include:

Hardwood Flooring- Hardwood flooring is a wonderful floor covering providing warmth, elegance, and functionality. You see the improvement immediately after it is completed, and enjoy it for as long as you own your home. It is an excellent example of an improvement that has an immediate benefit, but may or may not have a financial benefit.

Energy Efficient HVAC- Replacing HVAC systems is an expense that no one looks forward to, but when considering the options don't base your decision solely on price. Consider how long you will live in the home, and if it is long term choose higher efficiency appliances. More efficient HVAC Systems are an example of an improvement that you will need to wait to see the benefits in the form of monthly savings on your energy bills.

New Kitchen- Lets face it you spend a lot of time working in the kitchen. Once completed a kitchen remodel is wonderful. Everything looks and feels new. It's easier to prepare your meals, and faster to clean up afterwards. In addition a new kitchen (in most cases) is the single best way to add value to your home. A kitchen is an example of an improvement that has both immediate benefits and long term benefits.

3. How will I pay for it?
The safest way to pay for your improvements is cash/check from your savings. This isn't always a possibility for everyone, and a case can be made against it as well. When deciding whether or not to pull money from savings it is important to consider the rate of return on your savings in comparison to the finance charges when borrowing. Another concern should be liquidity. (Defined as: the condition of having enough money on hand to meet financial obligations without having to sell fixed assets.) In times of financial hardship, (i.e. layoff, illness, etc) it is much harder to borrow, so keeping a good amount of savings on hand is important. In most cases you also have a lot of choices when financing your improvements. With the plethora of lenders who want your business, it is possible to obtain very low interest rates. Consider the options:

Financing on Credit Cards
K&G Home Improvement accepts credit cards as payment for both materials and labor¹. In the past credit cards generally charged higher interest than other options, but recently credit card companies have begun to offer very low rates for a short term. When you're borrowing a small amount that you can repay in less than 1 year, it is the most cost-effective and hassle-free option, mainly because the other options can involve a good deal of paperwork and up front costs such as appraisal and origination fees.

Borrowing from Home Equity
Tapping into the equity of your home is a low-cost vehicle well adapted to financing home improvements. Normally, equity just sits there growing until you sell your house. Home equity loans and home equity lines of credit (HELOC) let you use this asset without selling your home. In addition, interest payments on these types of loans are normally tax deductible².

Equity loans come is a wide variety of programs with fixed or variable rate options and repayment terms from 5-40 years. They are for a set loan amount and typically offer a defined monthly payment that will not change and rates between 7-12%.

Refinance loans with cash out- If your current home loan has more than 10 years left to pay and a rate higher than 8% you should consider refinancing it. In most cases you can receive the money required for the home improvements and a lower interest rate. In some cases it may even be possible to reduce your monthly payments as well. (click here to view current rates from a trusted lender)

HELOCs are the most flexible option. Look at it as a line of credit attached to your home's equity that you can borrow against at will, and you'll only pay interest on the amount that is currently borrowed. It is a definite advantage if your home improvements bring unexpected expenses down the line. For instance, there might be surprises hidden in a wall that a contractor can't see when making an estimate. Or if you're doing the job yourself, you might underestimate the materials needed or even break that shower enclosure you're trying to install.

Borrowing on your 401(k)
If your employer's retirement plan allows for borrowing for home improvements, then tapping your retirement stash can be relatively painless. Because it's your money, there's no credit check, less lag time and low rates. But if you leave your job after having borrowed from your 401(k), you will have to pay back the loan in full or pay about 30 percent in withdrawal penalties and taxes. The same IRS rules apply if you don't pay the loan back within five years.

Life insurance loan
Borrowing on the cash value you've built up in your whole, universal or variable life insurance policy is easy because there's no credit check. When insurance companies pay interest on these policies, they continue to credit the interest even though you have the loan out. For instance, if you take out a $1,000 loan at 7.5 percent and the insurance company is paying 4.5 percent on the policy, then the net cost is 3 percent. But you earn a lower interest rate on the borrowed amount until the loan is paid back. If you're borrowing against the cash value, you may be lessening the death benefits. This means if you die before you pay the loan off, your family will receive a smaller payout.