What To Understand About Lån Til Garasje?

Some people would say that a house isn’t a home without a garage. It’s the one area attached to your home where you can park your car knowing it’s safe and protected from thieves and harsh weather conditions. Also, a garage can serve as a storage room for other things that clutter your home. 

But, there’s so much more when it comes to having an area like that available at your disposal. You can easily transform it into a gym, or maybe start a small business there. No matter what you’re trying to achieve with your garage, you should ensure you take care of it first. 

Money doesn’t grow on trees and like most home renovating projects, remodeling the garage requires a significant amount of cash. If you have some money saved for rainy days or for an investment like this, then you can easily start transforming your garage step by step. 

On the other hand, if you don’t have the necessary funds for fixing or adding a garage to your home, you need to look into lending options. Loans exist to make your life easier, but only if you choose the right one for your project.  

Why go with this option? 

We can all agree that a brand new garage whether added or remodeled increases the value of a person’s home. Constructing a garage may be a pricey task due to the high cost of the necessary materials and electrical components for a quality job. 

A one-car garage can run up to $10,000 in price. Building a garage large enough for two cars will cost extra. The price of a bigger garage might range anywhere from $16,000 to $40,000. You need to do the math beforehand so no unwanted surprises happen along the way. 

As soon as a construction project officially begins, there’s a greater chance that unanticipated costs will cause it to go over budget. If you don't have the cash to cover the additional costs, the construction might have to be stopped. No one wants this!

Moreover, even if you have enough money to pay the expense of building a garage, it’s still a good idea to plan ahead for any additional costs that may arise. If you don’t want to deal with unnecessary delays on the project, then you can always look into loans for help. As mentioned above, choosing the right type of loan plays an important role in how the project turns out. 

You should know that you need to look into home improvement loans if you want to get the garage of your dreams. The more you do research, the faster you’ll be able to figure out what suits your needs best! Below we’ll explain some of the options you can check out: 

Home equity loans

Have you heard of home equity loans? Of course you have. But what do they mean exactly? To put it simply, with a home equity loan you’ll be able to borrow money based on the value you’ve built in your home. 

To qualify for a mortgage with the most of financial institutions, you’ll need to have a credit score of at least 620 and 20% equity in your home. You will be given a one-time, lump-sum payment if your claim is accepted by the lender.

Fixed interest rates for home equity loans normally range from 5% to 14%, however this can vary significantly depending on the market. There is a cap placed on the amount of money that can be borrowed. 

You are only allowed to borrow up to 80%–85% of the equity in your property. If the cost of building your garage comes in higher than expected, you may need to look into additional funding options in order to finish your construction project.

Therefore, you should be careful about your decision. Some people are not comfortable with using their homes as collateral to back up this type of loan, but this is what will happen if you decide to take it. 

Should you fall behind on your mortgage payments, you run the risk of losing your home. A good idea is to check out this link forbrukslån.no/lån-til-garasje/ if you want to discover more about the options you have! 

HELOC

HELOC or a home equity line of credit is also an option you can explore if you want to take care of your garage. This type of loan functions very similarly to a home equity loan. The prime rate, as well as the lender's margin, both have an impact on the variable interest rates that are applied to HELOCs. You will only be responsible for paying interest on the amount that you borrow.

Because the equity in your house is utilized as collateral for the loan, the amount you’re eligible to borrow is capped at a range that normally falls between 80% and 85% of the equity currently present in your property. 

The requirements for the loan are comparable to those for home equity loans, and they differ from one lender to the next. A risk is included with this loan as well. If you are unable to make your payments, the lender may seize the property you owe them.

Personal loans 

Personal loans are taking over the world right now and it would be a shame if you fail to look into this option as well. Getting a personal loan is effortless if your job is secure and you already have an amazing credit score. 

But, it’s extremely important to shop around for different lenders and lending institutions because committing to one because the interest rates on these types of loans can vary greatly from one lender to the next. 

If there is not enough equity in your home to qualify for a home equity loan or a home equity line of credit (HELOC), you may be able to fund the construction of a garage by taking out a personal loan. If everyone else is turning to personal loans, why should you be the one missing out on all the fun? 

As personal loans are often unsecured, the maximum amount you can borrow is based on both your income and your entire financial status. But you should also be prepared to face higher interest rates and a shorter repayment term if you definitely decide to go with a personal loan. 

The reason behind this is because lenders don’t have any collateral to fall back to if you don’t succeed in repaying the amount. 

Credit cards

Apart from all of these attractive options mentioned above, some homeowners turn to their credit cards for any expenses needed. So, in other words, you can use your credit card to finance the remodeling of your garage. 

Using your credit card won’t cost you anything when it comes to application fees or transaction fees. In addition, you won't be subject to any prepayment penalties if you pay off your credit card balance early. 

Consider choosing a credit card that has a 0% introductory APR offer if you do end up deciding to make use of a credit card. But, you should make sure you have a strategy to pay off the debt on the card in order to prevent paying excessive interest rates once the promotional time has ended.

But, there are also limitations you have to consider when it comes to your financial health. Maximizing the usage of your credit card is never a good idea to begin with. You shouldn’t borrow more money than you can actually repay. What if an unexpected emergency arises? 

How will you be able to cover it if you’ve spent all of your money on garage remodeling? So, if you want to have a good credit score and not get into further debt than necessary, figure out a financial plan for your garage. If a credit card doesn’t seem like the most reasonable option, you can always look into others mentioned above. 

What else to have in mind?

Before you actually get the money for your garage, you need to figure out a couple of things first. 

If you’re set on building a new garage from scratch, you need to figure out how big you actually want it to be. You can also have it attached to your home or detached and built somewhere in your backyard. It all depends on your preference and what suits your needs most. 

Moreover, you also need to have into consideration the cost of the entire project. Depending on how big you want it and which materials you want experts to use to build it, the price can vary greatly. If you can’t seem to handle the expenses, even with loans, maybe now it’s not the right time for a garage. 

On the other hand, if you desperately need it for your house, be careful about which option you choose because it can have a tremendous impact on your financial health. So good luck with getting the garage of your dreams!