As home values have risen steadily through the past year and interest rates staying low, it’s a great time to invest in your home to increase that value even higher.
A Cash Out Refinance is a great way to start the process. You can take out money from the equity in your home to use as the bank to fund your remodel and turn your home into the modern castle you want it to be.
However, not every remodel is worth the money and will increase the value of your home more than it costs. There are a lot of factors to go through before you make your decision. We’ll go over three.
Will It Increase My Home’s Value?
This is the big one. Things like a deck, or a pool, or a patio, or a finished basement or rec room will make your home more valuable and more appealing to potential buyers. You can make your house instantly appealing to someone looking to buy a smart home, for example, if you do it right and capitalize on a trend. If you’re planning on staying for a while, this may not mean as much to you.
Will I Enjoy the Remodel?
Oh, you won’t enjoy the process. Anyone who’s gotten a new kitchen while living in the home can tell you that. No, we mean will you enjoy the aftermath, when you’re having coffee on your deck or swimming in your pool or watching the Super Bowl in your man cave. That’s the question. Will you use the addition, and will it bring you enjoyment equal to the cost?
Is This Trendy or Made to Last?
A lot of remodels are done building new and trendy features onto a home that may look silly in a few years. It’s hard to “future-proof” your home with a remodel, but look back at fads that have gone by the wayside, like shag carpeting or mirrored ceilings, and imagine what your remodel will look like in 10 years. Nothing worse than a remodel that makes your home less valuable when you refinance or move.
If it’s time to remodel your home, call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?