Financing Home Improvements
Your home isn’t just a place to live, it’s an investment for your future. Why wait to make improvements to your investment? Financing options for home improvements can help you change your home now and pay for it over time, or give you options you didn’t think you had. Whether necessary or optional, a small weekend project, or a large renovation, PRM can help you finance your vision.
Here are a few financing options that may be perfect for your home improvement goals:
Refinance Your Mortgage:
Refinancing your mortgage to pay for home improvements is a common way to get work done while also lowering your interest rate and monthly payments in the future. Refinancing is essentially replacing your original loan with a newer model. And if there is equity available in your home, you can cash it out and use the money towards:
- Home improvements
- Paying off debt
When refinancing you can change your mortgage to a variety of loan types, giving you options for your specific financial goals.
Home Equity Line of Credit:
If you are happy with the terms of your first mortgage and don’t want to exchange them for new rates or terms, a Home Equity Line of Credit (HELOC) can be a good option. With a HELOC, as long as you make the minimum monthly payments, you can withdraw money as needed and pay it back at your own pace. You also don’t have to pay interest until you use the money. The equity line is good for up to 10 years, and can be renewable.
Home Equity Loan:
A Home Equity Loan is a little different, with this option you borrow a set amount of your home’s equity. You then pay a fixed amount over a certain period of time, usually 15 or 30 years. Home Equity Loans provide access to funds (depending on your home’s equity) and can be easier to qualify for than other types of loans because they are secured by your house.
A construction loan is often used to build a house or make major renovations. This can be a great option if you want to:
- Build a new home
- Add on to your current home
- Make a major renovation
With a construction to permanent mortgage, you only need to qualify once, sign one set of documents, and only pay one set of loan fees for both construction-phase financing and a permanent mortgage!
Streamline 203K Loan:
The Streamline 203K Loan program offers you the resources to rehabilitate a home that needs serious renovation; either your current home or a fixer-upper, without the extra cost or complications. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
Homeowners who are at least 62 years old and have significant equity in their home may be eligible for a reverse mortgage. Homeowners can tap into that equity and receive monthly payments, a lump sum payment, or a line of credit, to use on practically anything including home renovations or improvements. The loan does not come due until the homeowner no longer lives in the home full time or passes away.*
The types of financing for home improvements vary and depend on your specific situation. Give us a call to chat about the right home improvement financing for your situation!
Contact us today to find out how we can help you finance your home improvements!