Blog Posts about Renovations
One of the most common reasons for home renovations is the positive impact that they can have on the value of your home. Taking out a home renovation loan can be a real investment in your future. And one of the main considerations when planning home renovation work is a home’s future value. In fact, there’s no ignoring that the right renovations and additions can add big bucks onto what a property is worth, and that’s just looking at the value that’s added today.
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.
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 have decided a renovation project is the best way to get a home you really love. And you know you need a loan, but perhaps what you don’t know is where to start. We know it can be overwhelming, but take a deep breath. We are here to help guide you through the process! At RenoFi we break the renovation financing process into 4 simple steps that will walk you through the initial phase of getting your renovation off the ground.
Current Home Location: West Chester, PA Built in 1930 1,800 sq. ft. 4 beds, 2.5 bath Previous renovations: remodeled kitchen, hardwood flooring throughout Valued at $405,000 The Renovation Additional 850 sq. ft. New great room with entry from backyard New master suite with walk-in closets All new exterior siding & roof Total Cost: $200,000 Post-renovation value: $807,500 Five years ago when Justin and Nicki found their current home in West Chester, they had no doubts it was exactly where they wanted to be.
No matter what the motivation for your home renovation may be, you’ll want to know that your money is well spent. RenoFi helps you finance your project in the smartest way possible, and now we’re sharing which improvements provide the best return on investment (ROI) to increase your home’s value too. Here are the top 3 renovations with the best ROI: 1. Remodeling Kitchen & Bathrooms As the two most utilized spaces in a home, investing in these rooms makes sense for both ROI and quality of life.