How To Pay For Emergency Plumbing Work
When a significant component of your home’s plumbing system fails, you must get it fixed and done fast. Even minor plumbing repairs can snowball into much larger, more expensive problems over time if left unchecked. Unfortunately, not all of us have the cash to cover expensive plumbing costs, but that shouldn’t dissuade you from sorting your plumbing emergency. Here are five ways to finance emergency plumbing work.
1. Apply for an Overdraft
The first way to finance emergency plumbing work is to apply for an overdraft with your local bank. Although banks typically apply high charges when you go overdrawn without authorization, applying for an overdraft can give you quick access to cash while paying an annual percentage rate (APR). In addition, applying for an overdraft on your current account is a way to pay for minor plumbing emergencies without incurring high charges or affecting your credit score.
2. VA Loans
A VA renovation loan is a mortgage backed by the Department of Veterans Affairs. This mortgage allows borrowers to finance the cost of repairs or improvements along with the purchase or refinance of a house. The loan amount is based on the projected value of the home after the renovations are completed, which is determined by a VA appraisal. A VA renovation loan has the same benefits and requirements as a normal VA loan, like no down payment or mortgage insurance, and low interest rates. The renovations must be finished within 120 days of the closing.
3. Refinance Your Mortgage
The third way to finance emergency plumbing work is to refinance your mortgage. This is an option worth considering if you own your own home and the cost of the plumbing repairs is high. Plumbing repairs will not only save your home from water-related damage but could also lower your utility bills and add value to your property. For instance, paying for a drain inspection could identify serious problems that would have led to subsidence or moisture damage in the walls or foundations of your home. In addition, refinancing your home can net you a low-interest rate loan while helping you build value in your property.
Depending on your circumstance, there are different ways to refinance.
4. Take out a Renovation Loan
A renovation loan can be a great choice if you own a home or are purchasing a new one and the plumbing is failing and needs repair. There are several types; Homestyle, Limited 203(k) and Standard 203(k). Each has own guidelines and restrictions regarding loan amounts and others.
5. Apply for a Grant
The fourth way to finance emergency plumbing work is to apply for a grant from your local government. Your local government’s website may have details about grants and financial incentives for homeowners in your area. For example, you may qualify for a rebate if you are buying an energy-efficient product, such as a water heater, to replace an older model. You may also be able to claim a discount on the price of the appliance.
6. Apply for a Bank Loan
The fifth way to finance emergency plumbing work is to apply for a bank loan. If you have a good credit history, applying for a personal loan at your bank can be a great way to borrow money for plumbing work. Even a high-ticket item such as a new water heater is worth going into debt for, as new energy-efficient heaters will save you money on your utility bills. In addition, you will claw back some of your outlay via lower utility prices throughout the heater’s lifespan.
Get Help Today
The best way to finance a plumbing emergency depends on your situation; you must consider all the factors to decide the best way to cover the cost of the plumbing repairs and any other type of home improvement.
A licenesed loan officer at Par 4 Mortgage is available to help you determine the best way. For example, a renovation loan, a refinance or other. Are you a veteran? As there are different ways to get a loan to pay for unexpected plumbing problems or others, we are the professionals who can guide you.
Contact us here today to learn more.