Are you ready for a home renovation?
Outdated bathrooms. Overrun backyard. Unusable home space. If you have a home renovation project in 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 home’s dream renovation become a reality.
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.
A 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.
A 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.
A 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.
The housing market is still hot in Florida and I would love to help you find the best value in real estate. We can assist with both Re-Sales and New Construction homes and can help you find the right house or land at the best possible price. Also, if you own a home in Florida and are interested in selling I would be happy to list it for you.
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Millie Gil is a Broker for Bold Real Estate Group Inc., fluent in English and Spanish with a strong network of Real Estate Professionals Worldwide. Millie says “we are committed to providing a high level of service over and above the customer’s expectations. It is our goal to become your Realtor for life”.
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