We recently told you how refinancing your mortgage can help you find the money needed to make home upgrades, implement new energy saving products or redesign completely. Yet still, you may have been led to believe that you cannot refinance because you purchased at a time that gave you fewer options to gain equity.
When it comes to refinancing it is true that very few clients have the equity in their home to allow for a home renovation budget or sale. Luckily, with our Refinance Plus Improvements service now is the time to go for it!
What is Equity
When we talk about having equity in your home we’re referring to the difference in what you owe on your mortgage to date compared to the current market value of your home. Some people purchased their homes when the market was low and, as such, their home values have increased substantially even if they haven’t been making payments for very long. These are the lucky few who may already have equity. For most of us, especially those who bought in the last couple years, this option is next to impossible. Refinancing Plus Improvements allows you to gain equity to make upgrades you didn’t think were possible.
Who Should Seek Refinancing Plus Improvements
Does it seem like everyone around you is either buying, selling or updating their homes while you sulk about your outdated kitchen? If you fall into any of the categories below YOU too quality for our Refinancing Plus Improvements service:
- Purchasing a new home
- Upgrading current home features and appliances
- Selling your home
How it Works
A traditional refinance allows you to access up to 80% of the current market value of your home. Refinancing Plus Improvements allows you to access up to 80% of the total value of current market value PLUS estimated improvements. (See chart below.) Improvement value automatically increases the market value of your home. In other words, even if you have already refinanced you will still benefit from adding improvements as you can refinance for the total improvement amount.
|Current Market Value of Home||Traditional Refinancing||Available Equity|
|Current Market Value of Home||Improvement Quote||Available Equity|
First things first, determine what improvements you want to make. For inspiration, read more on Refinancing for Home Improvements here. Next, obtain quotes on the upgrades or purchases you wish to make. We will then use this quote in re-evaluating your house to determine the amount of equity you can access. What’s even better is that this option actually gives you access to more equity than a regular Refinancing service would!
Not only will you have the equity to make your upgrades, but in doing so, you really will increase your home’s value. What are you waiting for? Book your appointment with us and watch your Pinterest Dream Board transform into your reality!