Going into any home improvement project is an exciting proposition. You are going to add, repair, or remove SOMETHING from your home to change it fundamentally, and hopefully make it better. There are 3 questions about your home improvement projects that have to be answered before you start.
What’s this going to cost, and how are you paying for it?
Maybe you have millions in the bank and you’re just going to pay cash for your home improvement. It’s a great investment, it increases the value of your home, and you’re making money on the deal in the long run. The rest of us need to figure out a way to finance it. Whether you’re redoing your kitchen, putting in a pool, finishing the basement, or whatever you are looking to do, it’s going to cost you. Some people will put it on credit cards. That’s insane. The interest rates on your cards are going to kill you on the deal.
A Cash Out Refinance, though, is a great way to pay for it. This takes the equity in your home and uses it to get the cash you need, at the low interest rates that mortgages give you.
How will the improvement change your home’s value?
Home improvements generally have different Return on Investment (ROI) numbers. We went over a lot of them in this post. You can make back some of your investment on the increased value of your home with almost any improvement. You also have to factor in the personal value to you. If you get a pool and you are going to be in it every day, there is a lot of value there. If you put in a gym and never use it, there’s no added value there.
Do the costs make sense to you?
Do your research. Don’t call the first pool company on Google and bring them out. Start with reviews of companies. Talk to the people in your neighborhood or your friends and family. Find a company that you are comfortable with before you talk cost. The lowest cost may not be the best deal, if they do shoddy work.
If you are comfortable with your builder, then negotiate for what you want.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?