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Financial Advice On Remodeling Your Home
Anxious to do a little remodeling work to your home? Or maybe quite a bit? Then get started. You do have at least a $100,000.00 to spare, right? Good. What's that? You don't have that much? You are aware that even the average kitchen-remodeling job can cost nearly $50,000.00? Major remodeling work is expensive and a complex project requires careful attention to physical and financial detail.
Look At The Big Picture
Why are you remodeling? Are you looking for long-term personal comfort or are you wanting to sell your house a in a few years? The think of the bigger picture; specifically, how this remodeling will affect your return on investment. Some projects will significantly increase the value of your home (bathroom and kitchen improvement, second story) while others (swimming pools, sunroofs, anything luxurious) won't necessarily make a big difference and could be wasted money. It is best to do research on the subject of real estate as well as your local neighborhood standards. For example, how much are homes in your area selling for? What features seem to increase the general price? After research, finalize your reasoning by consulting with a real estate agent. Don't assume anything when this much money is involved.
Get A Real Estimate
Before starting on a project, make sure you have a detailed plan (including the work, the schedule, and the total cost of the operation with materials and labor) and then get a professional estimate just to be sure. A local contracting or architect can give you a realistic estimate to go by, any permits you need and just how little or how big a project it will be in the end. While homeowners are encouraged to plan and estimate ahead of time, when it comes to a final estimate, opinions and gut feelings can't compare with the word of a working professional.
Consider All Your Options
Not everybody has a hundred grand lying around in the garage. So financing arrangements might be the only way to get the remodeling work started. There are a few different options you could choose: (1) Cash Out Refinance, which refinances your mortgage. (In another words, put it all in on my tab) (2) Home Equity Loan, which allows you to borrow against your equity without affecting your original mortgage. (Consider this a second mortgage) (3) Home Equity Line Of Credit provides equity lines that work like credit cards. (It's like having an extra checkbook or Visa) (4) Finally, there are personal loans you can apply for, which are usually lower in overall amount (around $15,000) but these loans are not conditional, nor are they tied up with your mortgage or home equity. Aside from finding a hundred grand in the park, this is the best and safest way to go about a remodeling-provided you can keep it within the price limit.
Don't take chances with your money-and worse yet, your credit. Play it safe and spend hastily.