Buying a home is a major financial decision for anyone and making sure that home stays in good shape is just as important, possibly even more so, if you plan to sell that home in the future. What many first time homeowners don’t consider is how much upkeep and repairs take out of their wallet when they come along. Even the most well-prepared homeowners can’t plan for all damages that can occur to their home, and if that happens a cash out refinance just might be the best possible option.
The best reason to use a refinance is because it allows you to take care of costly renovations without using money from your monthly budget. Most home improvements take a sizeable amount of cash so the fact that you don’t need to save up to do them, means you can take care of them quickly and use the lump sum as negotiating power when discussing price with contractors.
If you keep an eye on interest rates and refinance at the right time, you can save yourself some money by qualifying for a loan with better rates than your existing one.
Buying a home can be seen as an investment and one way to increase the value of that investment is to renovate your home. When it comes to entertaining, people tend to congregate in the kitchen so that’s always a good place to start when it comes to renovations. It’s also one of the places that’s going to add significant value to your home as kitchen appliances are always being improved and updated.
Types of Renovations
Bathroom renovations don’t take as much money or time as the kitchen, but they can add tremendous value and give your home a more luxurious feel when it comes to fixtures and floors. Plumbing tends to cost a lot to fix if left for too long so it’s always a good idea to spend some money there to make your renovations last.
Adding a new room or bathroom can increase the value of the home significantly and help with those families that started small but are growing. It’s important to discuss additions to the home with an expert as they are a large undertaking and need to managed by a contractor.
Although it is possible to pay for home improvements with other loans, with a cash out refinance, you are able to secure a large sum of money and maintain one payment. If you were to use a personal loan, the interest rate could be high and put more stress on the timeline to pay it back and risk not getting the renovations done the best way possible.
Reach Out Today!
There are plenty of factors that come into whether or not a refinance is a good decision like your equity, term, and overall financial health, but we can help you discuss your situation and figure out what kind of renovation you’d like and how to get the loan need to make it possible. The Mortgage Company specializes in cash-out refinancing and other home refinancing products throughout Salina, Abilene and Ellsworth. Don’t hesitate to reach out to The Mortgage Company today!
