2012: The Year of the Home Improvement Loans
2012 is the year of the home improvement loans. Take a look around at the current housing market. A lot of homes on the market today need a little TLC. Renovation mortgages can help finance the purchase of these homes, rolling the cost of the work directly into the home loan. That's just the tip of the iceberg.
Because of the market and falling home home prices, a lot of folks are hesitant to sell their homes and move up into a newer house. That's where home improvement loans like the FHA 203k can help as well. Homeowners can refinance into one of these renovation loans, pay off the current mortgage and finance all kinds of home improvements. This will turn the old house into a dream home once again.
Some of the projects homeowners can finance this way include:
- kitchen remodeling
- add a bathroom
- waterproof & finish a lower level (basement)
- house re-painting, inside and out
- replacement windows
- design and build a deck
- roof repair
- new flooring - carpet, tile, laminate, linoleum
- screened in porch or 3-season room
A lot of these projects could be done over the course of a couple years with store financing or credit cards. Of course by the time they're completed, the work is out of date and it's time to start over. Another option is to refinance and remodel with home improvement loans like the 203k.
The 203k renovation loan option will roll the cost of the repairs directly into the cost of the mortgage, which means the interest rate stays the same and is tax deductible. It'll add about $6 a month to your payment for every $1,000 you finance. In other words a $15,000 kitchen project will add about $90 to your monthly house payment. That's probably a better number than putting the work on a credit card.
Learn more about the refinance and remodel option and how it's making 2012 the year of the home improvement loans with the free eBook "The Complete Guide to Spring Home Improvement Financing" at the button below. You'll find ideas for do it yourself projects as well as the bigger projects you might need a bit of financing for. Get your copy today.
(2012: Flickr user Daniel Moyle)