How You Can Finance Your Home Renovation

Dated: May 4 2020

Views: 63


Outdated kitchen.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.

Have questions about what rome renovations are worth the cost? Message me!, I would be happy to weigh in! 

Greater Charleston Area Homes For Sale: Jose Rey, Realtor and Chief People Officer with Southern Shores Real Estate Group in Charleston, SC. Advocating for sellers and buyers with professional real estate services. Nothing compares to having a real estate agent providing true data and research to make an informed and educated decision. You can get information about real estate in; Awendaw, Charleston, Cottageville Daniel Island, Folly Beach, Goose Creek, Hanahan, Harleyville, Hilton Head Island, Isle Of Palms, James Island, Johns Island, Kiawah Island, Knightsville, Ladson, Lincolnville, Moncks Corner, Mount Pleasant, North Charleston, Ravenel, Ridgeville, Saint George, St. George, Sullivans Island, Summerville, Ladson, Ridgeville, Wadmalaw Island, Walterboro. Click here!

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Jose Rey

Realtor, Jose Rey, feels blessed to call the Charleston-area home; so much so that he is dedicating his career to helping others do the same. As a successful real estate investor himself, he now enjoy....

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