You're Not Ready for a Refinance Mortgage
Sometimes a refinance mortgage is the perfect chance for a homeowner to pay off other debt, make home improvements or shorten the length of their mortgage term - saving money on interest paid overall. All of these are great ideas, but not everyone is ready for a refinance mortgage. Maybe your equity is a bit lackluster (you're not alone in this scenario - homeowners across the country have watched home values slide). Maybe the home improvements you want to do are minor. It all depends on your situation.
A refinance mortgage like the FHA 203k allows you as the homeowner to have a new mortgage that includes home improvements like replacement windows, a kitchen remodel, a new roof or building a deck. However, this option is for homeowners who will pay for a professional to perform the work. In other words, it's no a do-it-yourself home improvement loan. If you want to do the work yourself, you're not ready for a refinance mortgage. A home equity loan might be the right choice for you, or use cash you've saved up.
When you refinance your home, you're getting a new mortgage. If your credit has suffered in the last couple years, you may not be ready for this option. You may be better off making some upgrades to your home as you can afford them, and when you have the time.
If you'd like to learn more about the projects you can do yourself and the upgrades you could finance with the 203k, download "The Complete Guide to Spring Home Improvement Financing" at the button below. The free guide covers simple upgrades you can do to make your house feel new again, plus more in-depth home improvements you may need to finance and have a professional do for you. Get the free guide at the button below.
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