Home Improvement projects are always fun to dream about and plan out. Fixing or updating the fixtures of your home are a great way to make your home more “your home”. It’s an attainable fantasy, but what does it do for the value of your home? What is the ROI (Return on Investment) on your dream home improvement? How can your mortgage help you with home improvement?
Every year, Remodeling Magazine goes through and compares the cost of home improvement projects against the value that they bring to your home. This is the return on investment, or ROI. Looking through their cost vs. value analysis shows that certain projects tend to give back a solid ROI.
- Replacing your front door and your garage door are inexpensive projects that give an 85-100 percent ROI. They improve the look of your home and the functionality.
- If you replace siding or want to put in a deck, you can expect a 70-80 percent ROI. These projects are a bit more expensive.
- If you put together a small kitchen remodel, you can hit 70-80 percent ROI, but if you rebuild the whole thing it drops to 65 percent ROI.
- Replacing windows you will see 68-78 percent ROI.
- A new roof can cover 60-70 percent ROI.
- Want to redo your bathroom? You’re soaking up a 60-70 percent ROI.
While these are a few examples of home improvement projects you can do, they give a solid indication of what improves the value of your home and what you can do to really help build value. So, now, how do you pay for it?
You can lay the cash out, or put it on a credit card, sure. You can also open up a risky HELOC, or Home Equity Line of Credit. That’s essentially a credit card that you open up against the equity in your home. The best way to fund a home improvement project is with a Cash Out Refinance. A Cash Out Refinance takes the money that you have paid into your home, the equity that you have built over the years, and lets you use it to make your home more valuable.
A Cash Out Refinance gets you the cash you need to make your home “your home”.
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?