Inflation is hitting the average American consumer hard. Home renovations and improvements cost more than ever before.

For example, a new fence will cost you thousands of dollars. This investment cost is worth it to many as they seek privacy, safety, and a beautiful landscape. Your new fence can increase property value up to $40,000.

Once you have chosen to buy a fence, the next question is how to pay for it. Read on to learn about the different options for fence financing. Explore fence loans that will help you raise capital for a potentially expensive project.

Home Equity Line of Credit (HELOC)

Home prices continue to hover near record highs. Despite a modest decline, the median Idaho home is now worth nearly $463,000. This is much higher than the national average and has grown significantly over the past few years.

The good news for homeowners is that they can tap into this equity for fence loans. You can contact your bank or mortgage broker to discuss taking out a HELOC. It is a worthwhile use of home equity as you will see an increase in home value and curb appeal.

Credit Card

Depending on the cost of your fencing project, some decide to use a credit card to pay for fence installation. The first thing to check is whether your credit card’s spending limit will cover the project cost.

Some savvy consumers will take out a credit card with an introductory 0% Annual Percentage Rate (APR). They will pay off the project cost in 12 to 18 months to avoid paying interest. Better yet, they may even collect cashback points to redeem for a statement credit.

Personal Loan

You may decide to apply for a personal loan. The advantage of this financing option is that you can secure a higher loan amount.

This may allow you to combine your fencing project with another home renovation. A higher loan amount may be necessary if you choose more expensive features like automatic gate installation.

The disadvantage is that personal loans may have high interest rates. The additional financing expenses will increase the total cost of your project.

Retirement Savings Loan

Some homeowners choose to pull money out of their retirement savings. They take out a loan against their 401(K) or Individual Retirement Account (IRA).

The advantage of this option is that these types of loans usually have more favorable interest rates. As you pay it back, the loan repayments will go towards your balance. This, in turn, increases your return on investment when the market goes up.

The downside to this option is that you are shrinking your retirement nest egg. While repayments will increase your investment base, they will not restore it completely. There will be missed opportunities for account growth that cannot be replaced.

Your Guide to Fence Financing

You are now ready to start pursuing options to finance your fence project. There are many different types of loans that you can apply for. Whether you receive approval depends on several factors, including your credit score, income, and more.

Certified Fencing is willing to work with any type of financing option. We have the experience and knowledge to guide you through this step of the process. If you want to discuss fence financing further, contact us at Certified Fencing to speak with a professional.