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Whether you’re thinking about a small bump-out or a full-blown two-story addition, increasing the size of your home can make it more functional, look more attractive, and increase its resale value. The trouble is, additions tend to be big, time-consuming, and expensive projects — and they can easily go wrong if you don’t plan them right. Read on to learn six key steps that will help you complete an addition on time, on budget, and with the least possible amount of stress.

How to get started with a home addition

Home additions can boost the value of the home while enhancing aesthetics and functionality. In fact, home additions and renovations can be among the most effective ways to increase your home’s value, and you can tailor the construction to fit your needs and wants.

To transform your home addition ideas into a completed project, there are a few steps to consider first:

•  Create a plan

•  Set a clear budget

•  Work with trusted professionals

•  Decide what parts of your home addition you can do yourself

•  Research and obtain permits

•  Fund your project

Create a Plan for Your Home Addition

Perhaps you’re adding an extra bedroom and bathroom to the back of your house so you have a place for guests to stay. As part of the process, you’ll need to first make sure that the addition will fit within your property lines. You’ll also want to check with your local government to see how closely codes in your city allow you to build next to someone else’s property.

While creating your home addition plan, also ensure that any construction will not interfere with utility lines or pipes, as well as whether the structural changes you’re considering will fit into the framing and foundation of your building.

As you design the addition, think about them from two perspectives: first, how these rooms will add value to your living space; then, how the construction will impact the outside of your home, architecturally speaking.

You’ll also need detailed plans drawn up by an architect or builder that describe the scope of the work and the materials needed. To consider how home additions may increase the value of your home, you may want to use an online home project return on investment (ROI) calculator.

One strategy for approaching home additions is to create your dream list, then have alternate choices in mind if your budget, material availability, or other external factors create a need to alter the project down the road. For example, you may love the look of marble flooring, but its price point might be higher than you’d initially estimated — or perhaps it doesn’t blend in with the rest of your house once you’ve started laying out the plans. Having a back-up plan — and one that’s cost-efficient at that — could help keep your budget in check.

The cost for an addition will depend on the size and type of addition, as well as where you live, but you can expect to pay somewhere in the neighborhood of $150,000 to $250,000 to add 1,000 square feet to a house.

Also keep in mind that if you want your addition to blend in with the rest of your house, you also may need to plan for improvements in existing rooms.

Set a Clear Budget for Your Home Addition

To come up with a budget for your home addition, it’s a good idea to obtain bids from three different contractors, adding in 15% to 20% to the overall project price given by the contractor to cover unforeseen costs.

If the ballpark figure is too high and doesn’t align with your budget, then you might want to look at alternative choices for materials that will still give you the general renovation you desire. You could also scale back on your plans or save some of the more costly home addition projects for the future when your budget allows.

If you intend to work with a specific contractor, then your chosen company may be able to help you find lower-cost options — for example, replacing granite countertops with laminate ones — and offer creative solutions gleaned from years of industry experience. Or, you may want to look at reducing the scope of your project to a smaller addition or even asking the contractor for competitive pricing for the off-season.

Work with Trusted Professionals

Whether you do some of the home addition work yourself or plan to have the professionals build the entire addition, it’s crucial that you hire the right contractor for your needs. Tips for working with contractors include:

•  Get three to six bids, then research companies that seem like good matches. You can check for information about these contractors at LinkedIn, Angie’s List, and the Better Business Bureau . Have any complaints been filed at your state’s contractor board? (You can find state-by-state licensing requirements for contractors here .)

  For contractors who interest you, you may want to reach out to references they provide for personal experiences from past clients.

•  Be wary of suspiciously low bids. If a quote comes in significantly lower than that of the other contractors who bid your home addition project, it’s possible that the contractor did not understand exactly what you want; this can lead to significant problems if you hire this company without clarifying specifics.

•  Hire a contractor who you think you can work well with, but don’t base your decision largely on emotion.

Decide What Parts of Your Home Addition You Can Do Yourself

Say the home addition ideas you have are necessary to solve space problems, perhaps you’re having a baby, or maybe your mother is moving in with you — but you’ve got to find a way to contain the costs of the addition. In this case, it might make sense to figure out what you can do yourself.

If you’ve got the experience needed to do the demo work safely without damaging load-bearing walls, electrical wires, and the like, this can save you some money on labor. If you’ve got professional-level skills in plumbing or drywall, you might talk to your contractor about taking on those tasks yourself and further reducing the cost of labor. Or you can attempt to do the finish work, such as sanding walls, painting, and general cleanup.

Research & Obtain Permitting Requirements

Unfortunately, a home addition isn’t as simple as deciding what you want to do, saving up, then paying for the work. You also need to make sure your home is appropriately zoned for the home addition or remodel. Depending on the scope of the project, you may or may not need a permit.

For example, if you want to build a deck in some states, you need a permit if you intend for it to be more than 30 inches off the ground. Getting to know your local codes can help surmount significant hurdles as the project unfolds, which often will save time and money for homeowners.

Strategically Fund Your Project

To find materials for your home addition on a budget, you could shop at stores like a Habitat for Humanity ReStore , attend auctions, or explore similar options to find salvaged materials. If you’re employing a contractor, however, you’ll want to make sure they are willing to work with recycled materials and ones that may not be standard size.

For a higher-priced project, it might be tempting to use credit cards to pay for expenses. If you’re doing this to maintain a record of your spending or to take advantage of credit card reward points, this can be a good strategy provided you can pay off the balance quickly, ideally within a single billing cycle.

But when you can’t pay off the balances, it can be easy to get caught up in a spiral of debt, and credit card debt is especially challenging. Why?

Credit card interest rates are notoriously high. What’s more, credit card companies typically compound daily, which means they calculate the interest you owe daily and add that to the card’s balance. You then pay interest on your balance, plus any accrued interest, until you pay your balance off in full.

Getting a Home Improvement Loan for Your Home Addition

If you don’t have enough cash to pay for your addition in full and up front, and don’t want to run up credit card debt, you might consider getting a home improvement loan. This is essentially an unsecured personal loan that is used for home upgrades and renovations. Unlike a home equity loan or line of credit, you don’t need to have any equity built up in your home, or use your home as collateral for the loan.

With a home improvement loan, you receive a lump sum up front which you can use to pay for your addition; you then repay the loan over a set term, often five to seven years, with regular monthly payments. Interest rates are typically fixed.

The Takeaway

A home addition can increase the value of your property while also allowing you to retrofit your house to your current lifestyle. There are many factors that figure into a big decision like a renovation, and it’s important to consider it from as many angles as possible.

If you’re interested in getting a loan to finance your home addition project, SoFi could help. SoFi’s home improvement loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOPL0623039

Moving can fire up a rollercoaster of emotions. The early rush of excitement may give way to stress over the looming to-do list of all that needs to happen before the big move.

Like any life transition, moving requires a lot of preparation. Thankfully, there’s no shortage of ways to help streamline the process.

Below are some tips that could make moving more efficient, including a guide to common costs to prepare for.

How to Streamline a Move

Here are a few helpful suggestions whether you’re easing into a new townhouse, apartment, condo, or home.

Get Rid of Unwanted Items

Moving is a chance to let go of items that have gone unused for months or years.

In addition to being able to get rid of unwanted “stuff,” decluttering can help you cut back on moving expenses. With fewer things to move from point A to point B, there’s less need for packing materials or an extra large moving truck. It may even help make the move speedier and more cost-effective, since there’s less stuff to carry (or pay someone else to carry). What’s more, reducing how much you have can also help ensure your new place won’t feel overstuffed.

Prepare Early

As you declutter, it can be useful to identify boxes and packing materials needed during the move, such as packing tape, markers, labels, scissors, newspaper, and bubble wrap. Why spend money on new cardboard boxes when there are likely unused boxes already lying around your home or at friends’ places? A visit to local recycling drop-off points may be in order, as it’s possible they’ll have free cardboard boxes available there, too.

Consider starting off your packing a few weeks ahead of time, with non-essential items like out-of-season clothes or kitchenware that’s rarely used. And consider taking photos of all valuable items as you go. This way, if anything breaks or movers damage something during the move, it will be easier to file a claim and receive reimbursement for it.

Tie Up Loose Ends

Moving to a new area? Consider making a list of everyone you’ll want to contact once you’re settled in your new place.This may include:

•   Friends and family members

•   U.S. Post Office

•   Employers

•   Credit card companies and other financial institutions

•   Service providers (e.g., water bill or internet)

If you’re hoping to keep utilities or services with a specific provider, it may help to call ahead of time to verify if those services are offered in the area you’re moving to and if the service can be transferred to your new address on or after move-in day.

Keep in mind if you’re starting a new service with a new company, you may need to notify them weeks in advance so they have enough time to schedule a technician’s visit or mail out the necessary equipment.

If you’re leaving the region, you’ll also want to make a note to cancel recurring memberships at local-only businesses, such as gyms and fitness centers.

Organize Moving Documents

From leases to service contracts to quotes from moving companies, there’s a lot of paperwork to manage with a move. It can help to keep all important documents organized in a single folder (and be sure to print out a copy of any documents sent to you electronically). Some paperwork to include in the moving folder could be:

•   Old leasing agreements

•   A new signed lease (if renting again)

•   Invoices from professional movers

•   Receipts associated with the move

The paperwork may even come in handy after you move. Members of the U.S. Armed Services may be able to deduct moving expenses, for example. And some companies will reimburse employees who are moving to accept a new job for common moving expenses. Talk to your human resources department to find out if you qualify and which receipts or invoices will be required for documentation.

Prepare a Tip for the Movers

For those who plan to hire professional movers, setting aside cash in an envelope could help when it comes time to tip. Often, people tip their movers if they’re happy with the job they completed. Taking out cash the day before a move can simplify tipping, as it’s one less thing to think about during moving day.

Recommended: The Ultimate Moving Checklist

Common Moving Expenses

When budgeting for a move, it can be useful to plan for expenses that can add up quickly.

Understanding Professional Moving Costs

If you’re moving yourself, plan on paying an average of $50 per day to rent the truck, and budget more for mileage, gas, tolls, and other expenses.

If you’re hiring professionals for the job, you can expect to pay quite a bit more. An in-town move that uses a team of two movers could cost an average of $80 to $100 per hour, according to Consumer Affairs. Moving to another state? Be prepared to spend upwards of $5,000 or more, depending on how far you’re going and the amount of stuff you’re hauling.

You may also want to consider whether to budget for packing services, which typically runs anywhere from $300 to $500, and moving insurance, which protects you in case your items are lost or damaged during the move.

If you’re looking to save a little money — and your schedule is flexible — you may want to look into moving during the middle of the week or middle of the month, when demand tends to be lower.

Estimating Transportation Costs

In addition to budgeting for the cost of moving your things, it’s good to calculate the expense of transporting yourself to your new home. Be sure to factor in expenses such as flights, lodging, food, rental car, and gas.

Other Supplies and Expenses

You might already be loading up on bubble wrap, packing tape, boxes, and labels. But there may be other moving-day essentials to consider.

1.    Cleaning supplies: Many landlords expect outgoing tenants to leave a property just as they found it: clean and empty. Be sure you have a mop, broom, cleaners, and sponges on hand.

2.    Repairs and renovations: Whether you’re patching holes in your old place or making upgrades in your new home, consider budgeting for any renovations or repairs.

3.    Furniture and other home items: You may find that when you move into your new space, you need to buy some new furniture. You may want to set aside a little extra for these purchases.

4.    New license and vehicle registration: If you’re moving across the country, you may need to calculate the cost of getting a new driver’s license and registration in a different state. Fees for getting a new license and vehicle registration vary by state.

Recommended: Things to Budget for After Buying a Home

The Takeaway

Whether you’re relocating across town or across the country, moving can be exciting. But it can also be stressful and expensive. To help streamline the process, you can remove and donate any unwanted items, assemble your supplies and the movers’ tip ahead of time, organize all the moving documents in one place, and alert family, friends, employers, and creditors of your new address.

It also helps to prepare your budget. A DIY move is often the most affordable option — on average, it costs around $50 per day to rent a truck, which does not include mileage, gas, tolls, and other expenses. A professional mover costs substantially more. An in-town move that uses a two-person team may cost around $80 to $100 per hour, but that price could climb into the thousands for an interstate move.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPL0623004

When you’re in a crisis and economic circumstances feel anything but normal, you may wonder if you should rethink the way you’re using your credit cards. Here are some ins and outs of using — and rethinking how to use — credit cards during an emergency.

Is It Smart To Use Credit Cards During a Crisis?

Even during a crisis, credit cards aren’t magical “buy anything and worry about it much, much later” tickets. Many of the basics for using a credit card are in effect no matter what’s happening around you: Don’t make purchases just to get reward points, report missing or stolen cards immediately, be in the habit of checking your statements every month, etc.

That said, sometimes certain accommodations are made during a crisis. During the Covid-19 pandemic, for instance, many banks and lenders offered relief in the form of new policies to ease the burden for card holders who were struggling with their payments. Some waived fees, offered payment deferral or forbearance, or increased credit lines — some banks even offered these three forms of support, and more.

Of course, it’s unwise to assume a bank or credit card company is focused on looking out for you during an emergency situation. The better option might be to contact your card issuer for information and any fine print. And keep in mind that while the ability to increase your credit line might sound good, it could also cause more headaches down the road.

Making minimum payments on credit cards can cost you substantially more money over time. The interest — especially compounding interest, which is essentially interest on interest already due — can often be a big challenge with credit cards. But there are ways to potentially avoid interest on credit cards, such as paying off a balance in full each month.

During a crisis, it’s a good idea to continue using your credit cards responsibly. Of course, sometimes financial situations change, and you may need to use a credit card to pay for your daily essentials. While carrying some debt from one month to the next isn’t necessarily something to be thrilled about, it might be worth it if it means getting the things you need to live.

Planning for the Future — Starting Now

Conversations about using credit cards are often about responsible saving and spending. There is no blanket yes or no answer to whether it’s a good idea to use credit cards during a crisis, although it’s certainly possible to be a little wiser about using a credit card.

If you’re feeling spread thin financially during a crisis, however, it might be worthwhile to hunt for credit cards that can offer more reasonable rates than your current cards. A good place to start might be with your current card issuers and see if they can lower the interest rate.

Another alternative might be to consider a cash-back credit card that offers cash rewards in a small percentage back on each transaction. Depending on the issuer, the card might offer higher rates for certain categories of purchases, so it might be worth doing some research and strategizing if there is a big purchase you had already planned on making.

There are also balance-transfer credit cards, or a card you would transfer existing card debt to, usually at a lower annual percentage rate (APR). The rationale and incentive for these cards is to hopefully lock your credit card debt in at a lower rate than it would be currently, to therefore make it less burdensome to work on paying it down.

There can be wrinkles to employing this strategy, however, so be sure to read the fine print to avoid balance transfer fees or other charges. The idea is you can pay off that balance with no interest on a more compressed timeline. However, that lower rate might change after the introductory period, and you may be saddled with an APR that could be even higher than the one you had to begin with.

Putting the Cards Down — For Now

If the idea of getting more plastic feels more like a problem than a solution, you may want to consider taking out an unsecured personal loan. This type of loan is not backed by collateral and is likely to have higher interest rates and lower loan amounts than secure loans. They also typically require a higher level of creditworthiness than a secured personal loan does.

There are common uses for unsecured loans, including:

•   Paying off credit cards

•   Consolidating debt

•   Paying medical bills

•   Covering home renovation projects

The Takeaway

Dealing with a crisis can be unsettling, especially if your finances are less than stable. You may wonder if it makes sense to use your credit card to pay for everyday essentials. While there’s no one-size-fits-all answer, it’s important to continue using your card responsibly, whether you’re in an emergency or not.

If you’re stretched thin financially, there are strategies you can consider. One idea is to try to negotiate a lower interest rate with your current card issuer. Another option is to explore a cash-back credit card or a balance-transfer credit card, both of which could help increase your purchasing power during a crisis. Or you may also want to consider taking out an unsecured personal loan, which could help you get the funds you need to pay bills or consolidate debt.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPL0623031

Americans are carrying record levels of credit card debt. And, with the average credit card annual percentage rate (APR) for purchases now averaging 24.59%, the interest on debt can be as crushing as the balance alone.

Getting out from under high-interest debt can seem like a daunting prospect. The good news is that there are ways to make the process more manageable and a lot less overwhelming. While it can take some time, using a mix of smart paydown strategies can help you reduce your debt, lower your interest rates, and put you on the road to debt-free living. Here’s a look at some of the best ways to reduce your credit card debt.

Start by Creating A Budget

If eliminating credit card debt is the destination, creating a budget is like the road map that gets you there. While it may sound like a complicated process, it doesn’t have to be. These simple steps will get you started.

1.    Gathering financials. It might be a little painful to comb through bills and account statements, but the more information you have from the start, the easier it will be to set up a realistic budget. Try to collect the last three months of these statements in digital or paper form:

◦   Mortgage/Rent

◦   Utilities (water, gas, heat, internet, cable, HOA, etc)

◦   Pay stubs

◦   Credit card and auto loan statements

◦   Student loans or other miscellaneous recurring loans and bills

◦   Subscription services (Amazon, Netflix, Spotify, etc)

Taking the time to gather these documents can give you a clearer picture of what you’re spending each month. It can also help you suss out easy places to cut back, such as a gym membership you no longer use or a streaming service you rarely watch.

2.    Determining expenses vs. income. Once your finances are all laid out, you can tally up your average monthly income (after taxes) as well as your average monthly spending. Hopefully, the amount you spend each month is less than the amount you bring in each month. You’ll also want to make a list of your usual expenses and divide them into essential and nonessential monthly expenses.

3.    Implementing budgeting guidelines. A budget is simply a plan for how you will spend your money. Once you see how you are currently spending your money, you may realize that your spending doesn’t necessarily line up with your priorities. There are many ways to look at budgeting, but one easy framework is the classic 50/30/20 budget. It doesn’t require complicated spreadsheets or tricky apps to get started. The 50/30/20 method simply stipulates:

•   Half a person’s take-home pay should go towards “essential spending.” This includes housing costs, health insurance, groceries, utilities, minimum payments on debt, and anything else you need to pay each month.

•   One-third of a person’s post-tax pay should be tagged for “discretionary spending.” This is spending you could cut back on if needed, such as meals out, entertaining, clothing, or a gym membership.

•   Finally, 20% of post-tax income should be set aside for saving and debt payoff. The rest of a person’s paycheck is ideally reserved for retirement, emergency savings, and making debt payments beyond the minimum.

The 50/30/20 budgeting method can work well for beginners because of its simplicity and flexibility. Trying to adhere to the percentages can sometimes show budgeters their blind spots, or perhaps highlight areas where they might need to improve. But, it can also be flexible. Depending on the cost of living in your area and your priorities, you may want to play with the percentages.

Recommended: How to Stop Spending Money

Paying More Than The Minimum

When you have multiple credit card accounts racking up charges and interest, it can sometimes feel overwhelming. You might be unsure which, if any, to prioritize for payoff, and end up just paying the minimum due on every card each month.

But, if you just make the minimum payment due you might be surprised to learn how much more you end up paying in interest as the account balance accrues. Paying more than the minimum amount owed each month could lead to saving in the long run since there’s a smaller balance to charge interest on. SoFi’s credit card interest calculator can give you a general idea of how much you could possibly save on interest by calculating different repayment options.

Debt Payoff Strategies

Paying off more than the minimum each month is great, but coming up with a payoff strategy could offer a better outcome in the long run. Employing a method that works for your lifestyle could result in things like building momentum, alleviating stress, possibly making it simpler overall to conquer debt.

There are a number of simple debt-paydown strategies but here are two popular ones to consider.

•   Snowball Like a snowball rolling down a hill, this method starts with the smallest debt balances first, then builds towards the larger balances. You start by listing your debt balances from smallest to largest, without considering interest rate. You then put extra cash toward the smallest bill, while paying the minimum on all of the others. Once that bill is eliminated, you put extra cash toward the next-smallest bill. You keep the pattern going until all debt is gone.

The snowball method sometimes gets a bad rap because focusing on small debt balances first could mean paying more interest in the long run. But this method can actually have a positive psychological effect. Wiping away smaller debts can give you a sense of accomplishment that helps you power through the rest of the debt repayment process.

•   Avalanche If small wins off the bat don’t matter much, then you might turn to the avalanche method. This strategy starts with paying down the biggest interest rate debt first, paying minimums on all other debts. You contribute all free cash to the bill with the highest interest rate until it’s paid down or off. Continue, paying down debt with the next highest interest rate. Keep going until all debt is gone.

This method allows you to save on interest payments over the life of each credit card balance. The downside is that it takes longer to see any “wins.” But, once things start moving, it should have an avalanche effect, with each loan toppling.

Consolidating Multiple Debts

Having multiple bills, due dates, and accounts can lead to confusion over amounts due, resulting in missed payments and late fees. For some, a credit card consolidation loan might help to cut through the confusion by rolling all their revolving debt into one unsecured personal loan.

How can a personal loan possibly help? If you have outstanding amounts owed on multiple cards, you may be able to consolidate all the debt into one personal loan with a single fixed rate payment.

What’s more, unsecured personal loans often come with a fixed interest rate that’s lower than the average credit card rate, which means less interest charges could accrue each month.

Depending on how quickly you pay off a personal loan, you could save money on interest over the life of the loan with a lower fixed APR. Streamlining debt can also lead to more peace of mind, as can having a set term with a final payment date, instead of a revolving debt like a credit card. Rather than having multiple open-ended debts of differing amounts with varied APRs, you end up with one payment a month, with one rate and a payoff date.

Unsecured personal loans aren’t for everyone. While their APRs are generally lower than credit cards, not everyone will qualify for the lowest possible rates. And taking out a personal loan is still taking out additional debt, so it’s important to weigh the ramifications of adding a loan to one’s credit history.

The Takeaway

If you’re struggling with high-interest debt, know you’re not alone. Also know that there are a number of ways you can tackle the problem. A good first step is to look at your current income and expenses, set up a budget, and select a payoff strategy (such as the snowball or avalanche method).

You might also consider consolidating your debt to simplify repayment and, ideally, lower your interest rate. If you’re curious about this option, SoFi can help. With a low fixed interest rate on loan amounts from $5K to $100K, a SoFi personal loan for debt consolidation could substantially lower how much you pay each month. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOPL0623028

Upgrading your home doesn’t have to involve a full renovation. There are a number of light lift projects that can give your home a whole new look and feel, and even increase its resale value. Exterior upgrades, like fresh paint, a new front door, and better landscaping or outdoor lighting, can add to your home’s curb appeal. Indoor improvements, such as updated lighting fixtures, paint, or wallpaper, can give the interior of your home a more up-to-date, high-end look. Here are four ways you can upgrade your home without breaking the bank.

Exterior Improvements

A home’s front door is the focal point of the exterior. To upgrade its appearance, you might replace the door, or paint it and add new hardware. Decorating the door with a seasonal wreath or another personalized touch can also add to its charm.

Besides a front door refresh or upgrade, other exterior improvements you might consider include a new mailbox, a new porch light fixture, and perhaps some window boxes with plants and fresh flowers that add a bright contrast to your home’s exterior color.

Front door styles that are currently trending include bold colors (from rose to deep greens and rich blues), natural wood stains, and more glass (such as custom inserts and floor-to-ceiling sidelights).

How you landscape your front yard will depend upon where you live and the climate there. In general, though, modern trends include:

•   Natural landscaping using native plants, creating landscaping that’s eco-friendly and easy to maintain.

•   Pollinator gardens that attract butterflies, bees, and other insects that help pollinate.

•   Edible gardens, including lettuce, peppers, tomatoes, and more. Creativity is key!

Recommended: 15 Ways to Boost Your Curb Appeal for a Winter Open House

Lovely Lighting

Outdoor lighting doesn’t need to be white — filters can add a range of colors. These lights can spotlight key areas of landscaping, highlight where you like to entertain, or look attractive for even more curb appeal while providing illumination.

Size-wise, both tiny and boldly large lights are in vogue and, although lanterns aren’t a new trend, they’re still considered stylish.

After a period of all-white being a hot trend for interior lighting, table lamps and hanging lighting fixtures are appearing more often as dark neutrals in brown, black, or gray. They can be used to update the white, cream, or gray choices in a home.

Paying attention to texture in lighting fixtures can add interest and variety. Materials can range from wood to wicker and rattan, and can be crafted in contemporary shapes to avoid an overly rustic look. Also still trending are geometrically designed lighting fixtures, from simple to more complex shapes.

Recommended: Guide on Remodeling Recessed Lighting

Painting and Wallpapering

Painting rooms in a home can transform their appearance. What colors are trending? Grey and pale pastel tones are becoming less popular as homeowners begin to favor brighter shades, such as vibrant, saturated hues, often combining them with warm neutrals and earthy tones for an inviting balance. However, unless you’re planning to sell some time soon, personal taste is what matters most when picking paint colors.

Wallpaper trends also run the gamut, including those with a texture and colors often inspired by landscapes. In this style of wallpaper, expect to see some blues, greens and neutral shades. Wallpaper made out of natural materials is trending, whether that’s grass or straw, wicker or silk. This can provide a more sustainable choice and can pair well with softer lighting.

Wow Factor on Windows

In-style curtains often have hues found in nature, from green to ochre, and can also feature flowers, landscapes, and more. Geometric prints or two-tone materials may also appeal to some people. Velvet can be used to create a more intimate space.

Consider using double or triple curtain rods to add layers of window coverings. Then you can add a layer that filters light and enhances privacy, while also selecting curtains with the appearance you enjoy.

Recommended: How Much Does It Cost to Replace Windows?

Costs of a House Upgrade

The type of house upgrades listed here might be considered low-cost or low-end renovations, and can average between $15,000 to $40,000 for a 2,500 square foot home. If, once momentum gets going, the low-end house upgrade turns into a middle-end one, the average cost could range between $40,000 to $75,000.

If calculating upgrades by the square foot, figure between $10 and $60 per square foot, depending upon what you’re doing (knowing that the room being renovated can cost up to $150 per square foot).

Another cost-related factor is where the home is located. Pricing in urban areas might be twice as high as in rural areas, depending on the area’s costs of living.

Plus, upgrades in older homes may take more time and attention to complete. If the home is officially considered to be historic, there may be guidelines about what changes can be made.

Recommended: Renovation vs. Remodel: What’s the Difference?

Financing a House Upgrade

Sometimes, homeowners are able to pay for these upgrades out of pocket. This can be true when the costs are relatively small or when money has been saved for the costs of the renovation. This can be the smart choice when possible: no debt, no interest to pay.

A downside to paying for home upgrades with cash may be that the homeowner empties a savings account or cuts corners on the renovations to avoid needing to borrow funds. Or, if an emergency occurs and the savings account was used to renovate, then high-interest credit cards might need to be used to address the emergency.

You might consider a home equity line of credit (HELOC) to finance a house upgrade. This type of loan allows you to borrow against the equity in the home to pay for renovations. How much is available to borrow will depend upon how much equity is available and the loan-to-value ratio (LTV) that a lender permits.

For example, if a lender has an 80% LTV ratio, that means the institution would:

•   Appraise the home (e.g., $250,000).

•   Calculate 80% of that ($200,000).

•   Subtract current mortgage balances (e.g., $125,000).

•   Consider what’s left over ($200,000-$125,000 = $75,000) to be equity in the home.

The lender would also consider the financial profile of the borrower when reviewing the loan application. HELOCs often have a low initial interest rate and, usually, the homeowner can choose to pay interest only during the draw period. However, there may be upfront fees and the rate is often variable with high lifetime caps.

Another option might be a home improvement loan, which is an unsecured personal loan and not attached to the home’s equity. Funding can usually be granted more quickly with fewer, or sometimes no, fees. This may be a good option for people who don’t have enough equity in their homes for their project or who don’t want to use their home as collateral.

The Takeaway

There are a number of ways you can upgrade your home that don’t involve tearing down walls or putting on an $150,000 addition. Lower-cost upgrades may still require spending more cash than you have just sitting in the bank, however. Plus, you may not want to deplete your savings in order to upgrade your home.

If you’re interested in learning more about using a personal loan to finance one or more home improvement projects, SoFi could help. SoFi’s home improvement loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

​​Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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