If there have been updates you have been trying to get around to on your home, but haven’t had the time or the budget to get them done, you may want to consider refinancing your home to cover the costs. With the volatility of the market with the virus that we have been dealing with, real estate seems to be untouched, if not, stronger than ever. Not only that, but the rates that come with a refi are at an all-time low right now. Texas Home Solutions / Bath Vision is here to talk about why refinancing to remodel your home may be a great option right now.
Home Equity Loan (HELOAN) or Home Equity Line of Credit (HELOC)
When you are trying to use the equity in your home to get the remodeling projects you want done, you have a couple of options available to you. They are known as a HELOAN or HELOC. Both have their pros and cons.
HELOC: When you choose a HELOC to get your remodeling done, it is almost like a line of credit that can be used as needed throughout the remodeling process. The only thing about this avenue is that it is usually tied to a variable rate. That means that the interest rate can increase if the prime it is attached to does as well.
HELOAN: This is a more traditional option as you take out a loan with a remodeling plan in place. It has a fixed interest rate and you can usually choose between a 5, 10, 15 or 20 year repayment plan. This is usually the best option if you are planning on staying in your home long term, or more than five years.
Other Refinance Considerations
When thinking about refinancing your home, if your home has gained enough equity, it can allow you to drop your mortgage insurance if your lender had required you to have it when you initially purchased your home. This can add hundreds of dollars to your mortgage every month. Make sure you are shopping around for the best refinance rates to give you the lowest payment possible each month.
Consider Your Home Remodel
As you choose what you are planning to remodel and spend your money on, make wise remodel choices. If you have outgrown your home, consider adding square footage in some way. There are some repairs on your home that need to be made like a roof replacement or an HVAC system that needs to be completely replaced, and those upgrades should take precedent over aesthetic improvements.
Residential Remodeling & More in Axtell, West, Lorena, Woodway, Bellmead, Hewitt, Crawford, Robinson, Waco & McLennan County, Texas
If you are ready to remodel your home, you can count on the experts at Texas Home Solutions / Bath Vision to help make your vision for your home a reality. We will work hand in hand with you to create the home you have always wanted. Call us today!