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Outdated kitchen. Overrun backyard. Unusable space. If you have a renovation project on your mind for your Inland Empire home, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality (and finance your home renovation).
Ways You Can Finance Your Home Renovation
Cash
Paying in cash is the most straightforward financing option to finance your home renovation. Just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget. However, it can also extend your timeline.
Mortgage Refinance
If you have been making payments on your Inland Empire home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance. This reduced your payments and frees up some money to help finance your home renovation project(s).
Cash-Out Refinance
You can tap into your home equity and borrow up to 80% of your Inland Empire home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home. Why? Because this can add a lot of interest and fees. However, if your home’s value shot up since you bought it and your equity shot up along with it, it may very well be a viable option to finance any home improvement project you have in mind.
Home Equity
Getting a home equity line of credit allows you to borrow money against the value of your Inland Empire home. You receive usually up to 80% of your home’s value, minus the amount of your loan.
Before you decide on a specific choice, weigh each option first. Talk to your lender. Ask them any questions you may have about these options. Then, you can make an informed decision.
Muna Dionne, your Inland Empire specialist with Coldwell Banker Realty
