Outdated kitchen.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.
Author:Clint and Mindy Cronic Phone: 530-227-0345 Dated: February 13th 2020 Views: 27 About Clint and Mindy: ...
View our latest blog posts in your RSS reader. Click here to access.
Our team members are computer savvy which helps to provide us a technological edge over many other agents in the area. This edge, coupled with an aggressive marketing strategy and diverse advertising arena allow us to stay ahead of the market. When a listing becomes available, we know. Our experience in Residential, New Construction, and Vacant Land will help guide buyers to make informed decisions with the comfort of knowing that they have very diligent Realtors working with them 24/7.
Our home search engine is state of the art, allowing you to freely search the same MLS that we use…to have 24/7 access to all residential, land, investment and commercial properties that are available in Shasta County at this minute. We can also set you up on our FREE automatic email MLS update which can eliminate tiresome searching all together. Every second, when the MLS is updated with new listings, you will be emailed all new listings that meet YOUR specific search criteria, allowing you to see all listings as soon as they become available to be sure not to miss out on the property of your dreams.
We hope that you enjoy our site and it proves useful to you in your real estate transaction. We have created and maintain our site ourselves and are constantly updating it to better serve our clients. We love comments about items that our clients would like to have added to the site or changed for easier use so feel free to email us your comments!