Many people nowadays choose to install a roof cap. This not only enlarges your attic, you also create a completely new floor. However, installing a new dormer window is not cheap and not everyone has this amount available. Borrowing money for a dormer window is then an excellent alternative. There are a number of things that you should pay attention to!
Dormer loan, choose the right loan form
You actually have the choice of two different loan forms if you look at a dormer financing: A personal loan and the revolving credit. Both have their advantages and disadvantages:
Personal loan for dormer window
A personal loan is especially smart when you know exactly how much a dormer costs you. You borrow a fixed amount, which you repay in installments and against a fixed interest rate. That way you know where you stand and, moreover, the interest rate is deductible for a dormer loan.
Dormer financing revolving credit
The second loan form is the revolving credit. This is especially useful if you do not know exactly in advance what the installation of a dormer will cost you. With a revolving credit you agree on a limit amount in advance. Within that limit, you can then withdraw and repay unlimited amounts, whereby you only pay interest rate on the amount actually withdrawn. If the placement of the dormer window is cheaper, you will immediately save on the interest rate costs.
Dormer financing, what else should you pay attention to?
If you have made a choice between both types of loan, it is still important to find the most suitable loan. Pay particular attention to interest rate, conditions and duration.
- Conditions – Every lender uses different conditions that can make a loan unexpectedly expensive. So don’t just look at the interest rate, but also read the conditions carefully. For example, pay attention to any fine for interim extra repayments and to remission in the event of sudden death.
- Duration – Finally you coordinate the duration with the monthly costs to be borne. Always opt for the shortest possible duration at affordable monthly charges. The faster you pay off a loan, the cheaper it is in the end.
Financing dormer via mortgage
In addition to taking out a loan for your dormer window, it is also possible to increase your mortgage and pay for the dormer window. However, that is only possible if you have surplus value on your house. You also pay notary, advice and appraisal costs. This option is therefore not always possible, plus it entails additional costs.