We’ve put together a few reasons to consider a renovation refinance loan. This is a great vehicle to help people upgrade their homes without dropping a lot of cash from their savings accounts.
Here’s why it’s a great option. Your home equity. And since renovation projects are worth the time and financial investment, it makes sense to just go ahead and do it now! That way you can enjoy the upgrade now and it will make your house worth more whenever you decide to sell.
While we don’t recommend taking out too much, you may be surprised when you learn how much you can take out in cash without increasing your monthly mortgage payment.
Reasons a Renovation Refinance Loan is Great for Expanding a Home
Maybe you’re perfectly happy with your home… except it’s a bit too small. Your family has grown over the years and the kids need a little more space to themselves. No problem – a cash-out refinance works great for this too.
Yes, you can use this money to fund an addition to your home.
- Need an extra bedroom? No problem – build it on.
- Always wanted a screened-in porch? Great choice – this will help you pay for it.
- Tired of working from home where it’s so loud? Build a backyard office shed!
Think of all of the advantages this offers. It means you get the extra space you need, making life much more comfortable. You don’t have to go through the pains of moving, giving you more time to relax, work, or whatever else you want to do. You get to keep living in your beautiful home and stay with your neighbors that you’ve gotten to be good friends with over the years.
Why You Should Refinance Your Mortgage Now
Last but not least, let’s talk about why now is the perfect time to cash out on the equity of your home: your equity has skyrocketed!
According to Zillow, the average home was worth over 18.4% more in September 2021 vs. September 2020. So if you bought your house last August for $300,000, by September – just 13 months later – on average it’d be worth about $355,000. So just by sitting on your home, you now have about $55K in equity! That’s in addition to what you put down on the home.
Ready to apply for your renovation refinance loan? Send us a note and we’ll be in touch soon!