Refinance to Remodel Your Kitchen
A new kitchen could make your summer amazing. Imagine hosting a 4th of July party and being able to grill out on your deck while getting everything else ready in a nice kitchen. Plus, it's where we always seem to end up gathering anyway - so a new kitchen remodeled just the way you want it could really make those parties something your friends talk about for years. So how do you pay for this? One option is a refinance to remodel plan. With this option you have a few choices.
One option most everyone's heard of is a home equity loan. Despite the fact that we're all seeing and hearing the advertisements everywhere, these are difficult to come by in the current housing market. Most homeowners have watched their home values drop over the last 5 years or so, erasing the equity they've built up. That defeats the purpose of a home equity loan.
Another option you may have never heard about is a home improvement loan called the FHA 203k. This option allows you to refinance to remodel based on after-improved value. Take a second to process that...you get to finance home improvements based on the value they add to your home, not on the current equity you have (or don't have). This means you can add a $15,000 new kitchen to your house and finance it directly into your mortgage since it will add value to your home.
This renovation financing option is great for home buyers looking at homes that need a bit of TLC. That makes sense. But you can also put the FHA 203k to refinance and remodel your house. Other benefits to rolling these costs right into your mortgage include tax deductible interest, a fixed interest rate and one single payment.
Dig deeper into the refinance to remodel option to help make your summer amazing. Download "The Complete Guide to Spring Home Improvement Financing" at the button below. The free guide covers DIY projects to spruce up your house before summer, and other projects that you may want to finance. Get your copy today and get ready for a memorable summer.
(kitchen photo: Flickr user Nomadic Lass)