Home Renovation Loan Information and Blog Posts
Let’s be real. No one can actually predict what interest rates will look like in a few years — or even a few months. But what we do know is that mortgage rates have recently hit the lowest number ever recorded. As a result, it seems like everyone and their mother has refinanced in the past year. But there is a group of these perfect candidates who could really benefit from refinancing now that are at risk of missing the boat: those of you planning a renovation project.
Rob, Lee and I started RenoFi in early 2018 because of the belief that we could make a difference in millions of homeowners’ lives by empowering them to transform their homes into spaces they love with a smart and affordable financing solution. Little did we know that world events would bring people’s satisfaction with their home into such sharp relief. Today, we are announcing that we raised our Series A of $6.
You’re here because you’re looking for the smartest way to finance your home renovation. And a RenoFi loan is it. Our homeowners love how it allows them to get everything on their wishlist—which we love too! So now, you want to know what that looks like for your renovation project. Here’s a little background on the different factors lenders will use to dictate your rate for a RenoFi loan. There are four main components…
We’re going to be blunt here: refinancing can often be a dumb way to pay for your renovations. If you’re trying to lock in a significantly lower rate, you may be an exception, but for most homeowners, refinancing means throwing money away and getting less out of it. Let us explain. Here are 3 reasons why you shouldn’t use a Cashout Refinance when renovating. 1. You’ll Lose That Low Interest Rate If you bought your home when interest rates were higher (like maybe back in 2000), then a refinance could be a good move.
Did you know contractors actually hate construction loans? Since these loans will typically cost your contractor more time and money, it’s hard to blame them. But when your contractor actually refuses to work with a construction loan completely, then what do you do? Basically, you have two options. 1. Choose a Different Loan You do have other options; options contractors actually love—like RenoFi Loans. That’s because they’re way less of a pain than construction loans.
You’ll have a lot of decisions to make during your home renovation—how to pay for it is probably the biggest. That’s because making an investment in a home you love right now shouldn’t end up costing you for years to come. But too often homeowners make really bad choices when it comes to financing their project, and that’s exactly what happens. Here are 6 of the dumbest things homeowners do when paying for a renovation:
So, you’ve been planning a major renovation for months now. You finally found a contractor, and you’ve started looking for a construction loan. Hold up! There’s something you should know: contractors HATE construction loans. And you may not love using one either. But why?!? They’re A Lot of Work As much as you don’t like extra paperwork, neither does your contractor. And with a construction loan, there’s a lot of extra steps required of your contractor throughout the process.
Current Home Location: Malvern, PA Built in 1958 2,000 sq. ft. 4 beds, 3 bath Valued at $472,000 The Renovation Blow out walls between kitchen, living & dining rooms to transform entire first level into an open concept Completely update kitchen with all new finishes & appliances No additional sq. ft. Total Cost: $55,000 Post-renovation value: $510,000 For Joanne and David, moving from their current home was never an option.
You’ve grown to love where you live, but you’ve outgrown your home. You could move, but it may mean choosing between the right home and the right neighborhood. So you’re considering a major renovation project, but don’t really know your financing options. Chances are you’ve heard of Fannie Mae Homestyle or FHA 203K Renovation loans, but aren’t sure how these loans work when renovating an existing home. Here’s what you need to know:
FHA 203K and Fannie Mae Homestyle loans have traditionally been the only solutions for homebuyers looking to finance both the cost of purchasing AND renovating a new home. But today, that’s no longer the case. Mortgage bankers now often avoid suggesting FHA 203Ks and Homestyle loans to their clients, and realtors are steering both their buyers and sellers away from these options completely. Why? There are four primary reasons that apply to both loans: