There are many reasons to renovate a house: to update its look, to increase its value, to create more space for a growing family, or for personal enjoyment. Whatever your reasons to renovate, there are smart ways to finance the project. With the right approach, using your home equity can be a savvy way to manage the finances of a renovation project.
If you need financing assistance for your home renovation project, take time to research the wide variety of options offered by private companies and other financial institutions.
It is best for you to sit down with a mortgage and loans professional to explore the many plans, options and features that are available to you.
If you have built up equity in your home and have a first mortgage at a good rate, you may consider financing your renovations by increasing your existing mortgage. If your home is mortgage-free you may consider arranging a new first mortgage to benefit from the longer payback period and lower interest rates offered in this type of borrowing.
The type of financing plan you will choose will generally depend on how much your project is going to cost and how much you want to pay on a regular basis. Once you have a better idea of the amount you want to spend, you should shop around for estimates from at least three renovators. You should add a 10 to 20 percent contingency margin to the prices quoted to cover unexpected costs while the work is in progress.
At First and Second Mortgages, we streamline the loan process. We manage the consumer experience from beginning to end to ensure that the consumer receives the best service every step of the way. 403-543-0927 – 18664051228