Remodeling Costs: 3 Solutions to Help Save You Time and Money
Remodeling costs can be as hard to predict as they are to afford. That’s why it may be a good idea to consult with experienced home loan professionals before you undertake a remodeling project. They can offer solutions to help save you time — and money.
Here are 3 potential loan solutions to ask for by name:
• These are first mortgages that also allow you to borrow a lump sum from your home’s available equity. A refinance may let you improve the terms of your first mortgage while you get cash to pay for remodeling costs.*
• Typically, the interest rate tends to be less than many other types of credit, and is usually tax deductible. (Check with your tax advisor for details.)
• Also called second mortgages or “fixed seconds,” these allow you to borrow a set sum from your home’s available equity, while leaving your first mortgage unchanged.
• The interest rate and payment are typically fixed, lower than many other loan options, and tax deductible. (Check with your tax advisor for details.)
3. A home equity line of credit (HELOC)
• A type of second mortgage, HELOCs allow you to borrow against a line of credit, in some ways similar to a credit card, while leaving your first mortgage intact.
• Because the money you borrow can be repaid and re-used during the draw period, HELOCs can be a convenient way to pay for remodeling costs.
• The interest rate and payments fluctuate, but are generally lower than credit cards, and the interest expense is usually tax deductible. (Check with your tax advisor for details.)
Need a loan to pay for remodeling costs?
The loan experts at Countrywide Home Loans, a division of Countrywide Bank, FSB, can answer your questions and help you choose the right loan for your home remodeling needs. Give us a call today, at 1-866-436-0620, for a FREE, no obligation consultation.
Download FREE Home Remodeling Guides
• Hiring a Contractor Checklist
• Home Remodeling Checklist
* Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and/or the total amount paid when compared to your current situation.
