News outlets are still running stories about the cost of building materials, and we know it’s scary to think about spending even more money on your home remodel. But it is still a really good time to remodel your home. And if you take this time to refinance, your remodel could pay for itself!
Just owning the home builds equity right now, let alone remodeling. Home values are expected to increase 10.00% this year alone. So take advantage of that equity! With home values increasing year-over-year and low-interest rates, you’re basically double-dipping in the best way possible. It’s a no-brainer to put more money into your home right now.
You can tap into that equity to pay for your remodel by getting a Cash-Out Refinance on your mortgage. On a conventional loan, you can access up to 80.00% of your home’s value with a Cash-Out Refinance. So, you can refinance your home with your remodeling costs included, and get that refinanced mortgage with a lower interest rate than you have right now. And if you already have a low interest rate, loans like Home Equity Lines of Credit are great options too. This can save you thousands of dollars over the length of your mortgage. And a remodel is still going to increase your home value! If home values keep trending the way they are, your remodel is going to pay for itself with your home value.
And try not to fret about lumber and other material costs. Most remodeling projects, like a kitchen or basement, don’t require a ton of lumber. And if you’re doing an addition that does require a little more (like an addition), we haven’t seen as drastic of an increase as those news outlets are talking about.
The bigger thing to realize is that lower interest rates and increased equity will save you more money over the course of your mortgage than any increased building material costs. So don’t wait! Let’s get started on your remodeling project. Call us today!
Related Articles
