Home remodeling can add value to your home and at the same time make it a comfortable place to live, and some improvements are likely to be rewarded when it’s time to sell. A Recent research from Angie (Formerly Angie’s List) shared that it is the best housing feature that adds value to a property, from complex feature updates to large-scale home renovation projects.
“If you build your home with your dream features, you can increase the ultimate selling value beyond the cost of the features,” the article said.
The most valuable feature in all US housing markets was the pot filler, a kitchen sink attachment placed on a countertop that allows easy addition of water during cooking. Angi estimates that installing this fixture will cost between $ 600 and $ 2,000, but will be rewarded with a 3.20% price premium.
Other features coveted by today’s homebuyers who are rewarded with higher asset values are:
- Pendant light (2.66%)
- Under cabinet lighting (2.48%)
- His and her sink (2.35%)
- Barn door (2.32%)
- Butcher block (2.26%)
- Quartz counter top (2.26%)
- Oversized window (2.23%)
- Farmer’s sink (2.22%)
- Subway tile (2.13%)
The most valuable improvements also depend on where you live. For example, Angie said homeowners in the New York area can get the most benefit from setting up a garage (18.47%). This is a coveted feature in markets where off-street parking is expensive. In San Francisco, known for its sunny climate all year round, sellers can add maximum value to their home by adding a pool (11.35%).
Some of these property features are relatively cheap to buy and install, while others require significant upfront investment. for example, Add a garage According to Angi’s Home Advisor, the average cost to your home is $ 27,500. Make a pool It costs about $ 32,000 on average.
Fortunately, there are several ways homeowners can use their existing home assets or raise money for a home remodeling that allows them to split their initial costs into fixed monthly installments.Continue reading to learn more about home renovation lending, and Visit Credible to compare rates About borrowing products such as unsecured mortgages and refinancing of cash-out mortgages.
Three Ways to Fund Home Improvement
A According to recent research While the average American homeowner can get nearly $ 200,000 in remodeling, many consumers can be constrained by the high initial costs of home renovation. Thankfully, there are several ways to fund a home renovation project:
Read more about each strategy in the sections below.
Mortgage refinancing is when you borrow a new mortgage on better terms to repay your existing mortgage. Cash out refinancing It’s time to borrow a mortgage that’s bigger than your current mortgage, allowing you to effectively put your home’s assets in your pocket with the cash you can use to pay for home improvement. increase.
According to the market, the average homeowner earned more than $ 55,000 in home wealth in 2021. New reportThis gives some borrowers the opportunity to access more money than ever before by refinancing their cash outs.
For refinancing a mortgage Closing cost, This is usually between 2% and 5% of the total loan amount. plus, Mortgage rates It surged rapidly in 2022. In short, it’s important to shop at the lowest possible rate depending on your financial situation.
You can visit Credible Compare mortgage refinancing rates Straddle multiple lenders at once. That way, you can rest assured that you’re getting competitive rates while you’re funding your home remodeling.
Another popular home renovation loan option is Home Equity Loan or Home Equity Credit Line (HELOC). This is another loan in addition to your first mortgage that you can borrow for the equity you have built in your home.
Home equity loans have a fixed loan amount and repayment terms, but with HELOC you can borrow only what you need from a rotary credit line.Both borrowing options It is a secured loan It uses your home as collateral. That is, if you do not repay the loan, the creditor can seize your property.
Most mortgage loans and HELOC lenders can borrow up to 85% of the value of your home.like Refinancing a cash-out mortgageWith these types of loans, the borrower has to pay the closing costs.
You can do it Learn more about home equity calculations Reliable.
Unlike other secured loan options for home renovation loans Personal loan It’s not safe and you don’t have to use your house as collateral. They can borrow a lump sum cash payment that you pay at a fixed interest rate with a set repayment period, usually a predictable monthly payment over several years.
Because personal loans are unsecured, lenders determine eligibility and loan terms based on the borrower’s credit history.Applicants with high credit and low credit Debt-to-earning ratio (DTI) is subject to the lowest rates available, but if credit is fair or bad, higher rates may be displayed if applicable.
Another benefit of using personal loans to improve housing is for lenders Prompt funding.. The loan amount may be credited directly to your bank account as soon as the business day following the loan approval. This is in contrast to home equity options, which require longer closure periods. In addition, short-term personal loan rates are now close to historically low levels. Data from Credible..
You can browse Current personal loan interest rate It is in the table below.And you can visit the credible Pre-qualify through multiple online lenders Free at once without affecting your credit score.
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