HOW YOU CAN FINANCE YOUR HOME RENOVATION

Dated: October 5 2021

Views: 7

HOW YOU CAN FINANCE YOUR HOME RENOVATION

How You Can Finance Your Home Renovation

Outdated kitchen. Overrun backyard. Unusable basement space. If you have a home renovation project on the mind, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality.

Cash. Paying in cash is the most straightforward financing option, just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget; however, it can also extend your timeline.

Mortgage Refinance. If you’ve been making payments on your home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance, reducing your payments and freeing up some money.

Cash-Out Refinance. You can tap into your home equity and borrow up to 80 percent of your home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home, as it can add a lot of interest and fees.

Home Equity. Getting a home equity line of credit allows you to borrow money against the value of your home. You receive usually up to 80 percent of your home’s value, minus the amount of your loan.

Retirement Funds. Homeowners can consider pulling money from a 401K or IRA account, even though they aren’t specifically meant to cover a home renovation. This option might incur additional penalties or tax payments, but may be worth it when making improvements that will benefit them financially in the long run.


Blog author image

April Noessel

As a third generation real estate investor, I entered this profession with different agenda than most. My goal was purely to save the commission costs on my own deals. What happened next, I didn't exp....

Latest Blog Posts

Consider This, when to Refinance

CONSIDER THIS: WHEN TO REFINANCEThe article below is for real estate professionals to use on their own blog or website copyright free.Refinancing your mortgage is something most homeowners consider

Read More

TAKE 5: WHAT TO NEGOTIATE WHEN BUYING A HOUSE

TAKE 5: WHAT TO NEGOTIATE WHEN BUYING A HOUSEWhether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful. However, it

Read More

TOP TIPS FOR HOUSE HUNTING ONLINE

TOP TIPS FOR HOUSE HUNTING ONLINEHunting for a new home online is a great place to start your search, but it should not be your end all be all. Good listing agents are excellent at highlighting the

Read More

Wanna be a morning person?

ACHIEVE MORNING PERSON STATUSEver wish you could become one of those rare morning people? The ones that wake with a start, feeling refreshed and energized. The ones that get in that morning workout

Read More