Thinking About Financing Your Deck or Patio? Start Here.

A new deck, paver patio, outdoor kitchen, fire feature or complete backyard renovation can be a significant investment. And one of the questions that eventually comes up is: Should we pay cash for this, or should we finance it?

There’s no one right answer. Some homeowners have the cash available but would rather keep it in savings. Others know exactly what they want to build but don’t want to wait several years to save the entire amount. And some homeowners would simply rather have a predictable monthly payment than take a large amount of money out of their account at once.

Financing can be a useful tool. But just like choosing a contractor, choosing a financing option should be about understanding what you’re agreeing to—not simply looking at the lowest monthly payment.

Start With the Project, Not the Payment

One of the easiest ways to make an expensive project seem affordable is to stretch the financing over a long enough period of time. The better questions are: What is the total project cost? What interest rate am I being offered? How long is the loan? Are there any fees? Is there a penalty for paying it off early? How much will I ultimately pay if I carry the loan for the entire term?

A lower monthly payment isn’t necessarily a better financing option. Extending a loan over additional years can reduce the monthly payment considerably, but it can also increase the total amount of interest you pay. Look at the entire financing package.

Why Finance a Home Improvement If You Have the Cash?

Having the ability to pay cash doesn’t necessarily mean using a large portion of your available cash is the best decision for your household. If a $50,000 project would significantly reduce your emergency savings, some homeowners may prefer financing all or part of the project and keeping more cash available. Others might choose to put a substantial amount down and finance the remainder.

You Don’t Necessarily Have to Finance the Entire Project

Financing doesn’t have to be an all-or-nothing decision. You might decide you’re comfortable putting part of the project cost down and financing the remainder. That can give you a smaller loan and monthly payment without taking the entire project cost out of savings at once.

Financing Can Also Change How You Think About the Project

Financing can make it very easy to start designing around a monthly payment instead of around a budget. There is absolutely nothing wrong with adding the features you want, but understand the actual cost of those decisions. Don’t let a monthly payment hide the price.

Building It Right the First Time Can Make Sense

If you’re already building a patio and know you eventually want a seating wall, landscape lighting or a fire feature, it may be considerably easier to account for those things during the original design and construction. Financing part of a project can sometimes make sense when it helps you build the space correctly once instead of completing it in several disconnected phases.

Don’t Let Financing Determine What You Can Afford

Getting approved for a certain amount of money does not mean you should spend that amount. The lender determines what they’re willing to lend. You determine what you’re comfortable spending. Those are two very different things.

Understand Promotional Financing Offers

Home improvement financing can sometimes include promotional programs, deferred-interest offers or other financing structures. Read the terms carefully. Know when the promotional period ends, what happens afterward, whether interest accrues during that period, and what happens if the balance isn’t paid within the required timeframe.

Your Contractor Shouldn’t Pretend to Be Your Financial Advisor

Our job at Hearth & Haven is to help you understand your options for building your project. We’re not here to tell you whether you should borrow money. What we can do is give you a clear project price, explain available financing options, help you understand how project choices affect the overall cost, and let you decide what makes the most sense for your household.

Should You Finance Your Outdoor Living Project?

Maybe. If financing allows you to complete a project you’ve already planned for while keeping more cash available, it may be worth considering. The important thing is understanding the total project cost, understanding the financing terms and choosing a project you’re comfortable paying for. Whether you’re paying cash, financing part of the project or financing the entire thing, the backyard we’re building should be thoughtfully designed, properly built and something your family can enjoy for years to come.

Ready to Start Planning Your Outdoor Space?

Have a deck, patio, or outdoor living project in mind? Let’s walk the property, talk through what you want to build, and put together a plan that fits your home and your budget. If financing makes sense for your project, we can walk you through the options available so you can decide what works best for you.