Are you tired of looking at those ancient green avocado kitchen appliances? The wood paneling and shag carpeting in your family room? The roof leaking and not having a garage? Home Improvements are sweeping the country and add great value to your home. About half of home improvements are done by contractors and the other half by do-it-yourselfers.
So when do you decide to move into a new home or fix up your current home? When a home remodel project is a good idea?
"The American Homeowner Foundation says the total cost of moving to be 10 percent of your home's current value, according to the average estimate. So, if you can fix-up your home for less than 10 percent of what your home would sell for, it makes perfect sense to stay put and fix up your current home."
A home equity line of credit allows flexibility if your a do-it-yourselfer with many small projects. The lender gives you a line of credit based on the value of your home. They give you a credit card or checks to draw cash from your account as needed for the home repairs. So if the lender gives you a $50,000 home equity line of credit you can use up to that amount for your home repairs.
Just make sure refinancing your home makes financial sense. "Improving your home is almost always a smart investment, especially in this rate environment. Just make sure you'll be in the home long enough to recoup the cost of refinancing," says Lori Vella a senior banking executive.
Remodeling Magazine did a survey in 2004 and compared construction costs as a good return on your investment at resale time. The survey was sent to 20,000 brokers, sales agents and appraisers. Minor kitchen remodeling did the best returning 92.9 percent of your investment according to Remodeling Magazine. Other good investments returning 80 to 90 percent for the home owner according to the survey were bathrooms, deck additions, family room add-ons, attic bedrooms and sun room add-ons.
Dollar for dollar, home remodeling is the best way to improve your home's value. A home equity loan can even lower your mortgage payments, lower your interest rates and in most states are tax deductible. When you are done remodeling, the value of your home will be worth thousands more. Another tip is before you start remodeling, ask your local utility company if they have a mortgage program to improve the energy efficiency of your house. Most utility company's offer such a program.
If you are looking to buy a fixer-upper ask about HUD 203k. They have programs to finance both the remodeling costs and the purchase cost with one mortgage. Mortgage lenders usually offer HUD 203k programs to their borrowers.
There are many other reasons people use and need home equity loans including doctor bills and college educations and with the interest rates at all time lows, now is the time to consider refiniancing for a home equity loan.
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