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Cash or Loan? How to pay for your home improvement.

Thinking about starting a remodeling job at your home and you are unsure as to how to pay for it? do you pay cash or do you get a loan.

Cash payment for your home remodel

First of if you have any type of savings congratulations, given that we live in a culture in which not everyone saves it is an achievement to be able to say you have enough money to pay cash for a home improvement.

That being said, is it smart to pay cash for a big home improvement project? At face value yes it is a smart move, you aren't going into debt to pay for it and once you pay it off it would be paid off and you will only need to worry about enjoying what ever work you had done, if we are lucky enough to receive your business you would have the certainty of a worry free crawl space and superior indoor air quality.

Getting a loan to pay for your remodel

Sure you might be thinking the reason i have the cash is because i avoid getting unnecessary loans, and while that is accurate and we should all strive for that getting a loan might be a good investment.

Investment?! yes investment because if you have the discipline to save money chances are you will have good credit and with good credit comes low interested rates.

Let me throw some math at you and then let you decide for your self, mainly because im not here to tell you what to do; I'm here just to provide information.

The Math

Lets make some assumptions

1- Lets assume you are taking a home equity loan out

2- Interest rate will be 6 percent

3- The stock market on average has returned 10 percent since 1929 ( I know but bare with me)

Now that we have made those assumptions let me try to explain it the best way i can.

You have received a quote for $20,000 for your project, you have the cash in hand available in a normal savings account; you can pay for the job and be done with it.

If you take out a 10 year loan for the $20,000 by the end of it you would pay $6,645 in interest, with tax breaks it would go down to about $4,430

The total of your loan payback over 10 years would be $24,430.

You still have the cash but you are hesitant to invest in the stock market because well life, you decide to invest $10,000 over the same 10 years at a return of 10% a year you would make $ 54,141.

Crazy I know, and like i said before not telling you what to do only presenting information. When it comes to financial decisions is always best to take your time.

Regardless if its a Basement or a crawl space job, choose what is best for you! we will still provide our outmatched customer service and quality so you can have a worry free crawl space or basement with superior air quality!

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About Michael Church

Michael Church has been involved with indoor air quality since 2005 and feels the unhealthy crawl space is one of the major problems causing poor indoor air quality.


  1. Kirk Bass on October 1, 2020 at 3:30 pm

    This is great advice!! Your entire website is a lifesaver. Thank you so so much!!

    • Michael Church on October 5, 2020 at 1:17 pm

      You are very welcome and thank you for the feedback. We really appreciate you reading our posts.

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