Ways To Pay For Home Renovations And Their Pros & Cons

Introduction

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When holidays are around the corner, home improvement is an incredible option. However, changes and improvements come at a certain cost. What are the options available for you to pay for home renovations?

Checkout in this presentation.

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❖ Home Equity Line of Credit

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An easy and less expensive choice for home renovations Instead of considering the lending amount of home as a base after renovation, the mortgage lender in MA will consider use a tax bill or a new appraisal value to decide your home’s present market value.

Pros o Upfront costs of Home Equity Loan are lower than other loans o Repayment terms are flexible o Helps you improve your home’s value.

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Cons o Slightly higher interest rate than traditional first mortgage loan.

❖ Renovation Loan

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Approach the FHA 203k mortgage lender for the renovation loan.

The home’s value is considered after the major renovation is completed.

Pros o Purchasing and renovation under one loan. o Inexpensive process. o Tax-deductible.

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Cons o Lots of paperwork and limitations involved. o A lender needs to approve everything.

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❖ Refinancing

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The best way to pay for costly, and big home remodeling.

You can save a lot of money on your mortgage when rate of interest drops.

Pros o Tax-deductible interest. o It leaves you with some cash. o Old loan is replaced with a new one.

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Cons o It may require purchasing mortgage insurance that increases monthly payment more.

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❖ Conclusion ●

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Drew Mortgage Associates will help you start your journey toward home renovation. At Drew Mortgage, as an approved lender for 203k loans in Massachusetts, our loan officers will guide you throughout the mortgage process.

For more details visit : https://www.drewmortgage.com/pros-and-cons-of-renovation-loans/

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DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road Shrewsbury, MA 01545 Phone: 508-753-1656 Website: https://www.drewmortgage.com/

Peabody Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 Phone: (978) 750-1080

Boston Mortgage Lenders 232 Commercial St Boston, MA 02109 Phone: (617) 523-3060

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