A recent study from TD Ameritrade has shown that 48% of homeowners plan to renovate their homes in the next two years. With home values rising quickly and home development not keeping up, it’s a great plan to take that value and turn it into more. However, these homeowners need to find a way to pay for these renovations and should pay for them with a Cash Out Refinance instead of a Home Equity Line of Credit.
A Cash Out Refinance takes all of the equity that you have built up over the years, plus the value that your home has acquired during this stretch of home values rising, and lets you borrow against it to take cash out of the home.
You can use the money for whatever you want, but a great use for it is to make those renovations on your home. Many of them will increase the value of your home further and make it a home you may want to stay in longer, instead of moving to another home that may cost you more money.
Renovations like a new deck, patio, pool, fence, or interior work like a new bedroom, mancave, or office can add incredible value to your home, and play for itself.
We haven’t even talked about the best part of a Cash Out Refinance today. With rates near record-low levels, you can even get a Cash Out Refinance without increasing your monthly payment much at all! Lowering your interest rate in a Cash Out Refinance can keep your payments flat, letting you build onto your home without breaking your budget.
It also keeps you from a HELOC, which is a huge mistake during times like these. A Home Equity Line of Credit is a 2nd mortgage taken against your home that often comes with an adjustable rate that will hurt when rates do rise again. Stick with the incredibly low rates available now and take out a Cash Out Refinance today.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, 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?