CONTACT US

Contact Form

« Back to Blog Entries

How Do I Pay for a Remodel?

Posted by: admin | April 21, 2015
Remodeling projects are exciting ways to breathe new life into a space and really make it your own. They also require careful financial planning. While some people prefer to save the funds required for the project or pay piecemeal, there are several other ways that homeowner’s finance their projects. The financing option that makes the most sense will depend on your individual cash flow and personal preference. Here are some options that you may not know about to help you finance your next project: 
 
1. Secure a loan – A loan may provide you with better interest rates and a longer payback term, but there are many different applicable loans available. Many homeowners starting a remodeling project today start by looking to their mortgage broker, rather than a personal bank loan. There are several financial programs to sift through, so pre-planning is a must. Determine your estimated budget beforehand so that you can narrow down your search to loans that make sense for your project. 
 
2. Credit – Small remodeling projects may fit well into your budget on credit. If you can pay off a project easily in a couple of months, it is probably more economical than applying for a loan. If you have a card with a 0% APR for a certain amount of time, take advantage of your purchasing capacity, as long as you can pay the total before the promotional period ends. 
 
3. Cash-out refinancing – You may be eligible for this form of financing if your property value has increased and you’ve paid down your home loan. Talk to your mortgage broker about refinancing with the cash option. Your monthly balance may increase for a time, but you will have the cash flow necessary to complete the project. Carefully consider the interest rate for the project and the expected increase to your home’s value that the remodeling project will have. You may only have access up to 80% of the home’s value, so carefully consider what you currently owe and the home’s total value before deciding to take this route. 
 
4. Find energy efficient incentives – Think out of the box for remodeling projects. You may be able to significantly reduce your overall costs by implementing green technology. Look into tax incentives and rebates for installing appliances and energy solutions to make your project more affordable. 
 
5. A federal home improvement loan – The Federal Housing Administration offers two loans that are specifically designed for remodeling projects. One loan will provide you with up to $25,000 that is insured against default. The other is for housing that requires more work and there are a few different options to help you rehabilitate the property. 
 
6. Leverage your home equity credit – You can choose to use your home as collateral to take money on credit from the total appraised value. Look at the interest rates for these credit options versus a traditional loan. One may provide you with better overall rates for a larger remodeling project. 
 
With some careful planning, there are several viable options for homeowners looking to remodel. If you're looking to remodel, look no further than the professionals at RH Homes. Make a budget and stick to it to ensure the debt is managed appropriately, and we can help you remodel the home of your dreams! 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Build

Do you have land and need a contractor or a concept of a layout without final drawings?  We can help.  We are a very versatile builder that can personalize all aspects of the building process from design to implementation.

Let's
Get Started!

 

Custom home construction gives homeowners the opportunity to play a first-hand role in the design of their home, while also enabling them the ability to plan ahead for their family’s future needs. With over 18 years in the home building industry, RH Homes can deliver your big picture vision with superior workmanship and attention to details. 

 

Remodel

There is no better way to increase the value in your home than to renovate.  Valuable improvements to your home include adding bathrooms, kitchenettes, theater rooms and additional square footage to your basement.

Let's
Get Started!

 

Whether you are dissatisfied with the size, flow or overall aesthetic design of a space in your home, RH Homes can guide you through your remodeling options, developing a plan that will turn your visions into a reality. We handle kitchen, bathroom, master suite, living room, basement and porch remodeling. 

Improve

Love your home but need more square footage?  How about an addition to your current home?  Allow us to help design that extra area for an expanded kitchen, family room, bathroom, screened in porch, balcony, garage, etc.

Let's
Get Started!

 

RH Homes builds all types of home additions using the finest of materials to make your addition look seamless with the rest of your home. Whether you are looking for a design that matches the current aesthetics of your space or something that delivers a contrasting punch, we can deliver a look that adheres to your visions.