If you’re looking to do some home renovations but don’t have all the cash up front to pay for materials and contractors, here are a few ways to use mortgage financing to bring everything together. In this blog post, we’ll explore how you can leverage mortgage financing to turn your home improvement dreams into reality.
Existing Home Owners – Mortgage Refinance
When you’re an existing homeowner, one of the most straightforward ways to fund your renovations is through a mortgage refinance. By accessing your home equity, you can consolidate your renovation costs into your mortgage, potentially reducing your overall borrowing costs. It’s a financial win-win!
If you’re not in a hurry, wait until your current mortgage term is up for renewal. This is an excellent opportunity to refinance without incurring penalties. Regardless of when you refinance, you can access up to 80% of your home’s appraised value, assuming you qualify for the increased mortgage amount.
Home Equity Line of Credit
For homeowners with significant equity, a Home Equity Line of Credit (HELOC) is a more favorable option than an unsecured line of credit. HELOCs use your home as collateral, resulting in better terms and lower interest rates. Discover the versatility of HELOCs and how they can work for you by connecting with us.
Buying a Property – Purchase Plus Improvements
If you’re considering purchasing a property in need of renovation, some lenders offer a “purchase plus improvements” option. This allows you to include the renovation costs in your mortgage, provided the upgrades add value to the property. While there is a process to follow and details to consider, we’re here to guide you through the entire journey.
When it comes to financing your home renovations, mortgage options abound for both existing homeowners and those looking to buy. Whether it’s a mortgage refinance, a Home Equity Line of Credit, or the purchase plus improvements route, there’s a financing solution to fit your needs.
Don’t hesitate to reach out to us anytime. Your dream home is within reach!
Contributed by Sabeena Bubber – reach out to Sabeena for more info here.