Yes, it is still HOT, but with school starting many homeowners start thinking about fall projects or tackling renovations or upgrades before the holidays.
Homeowners have options for financing home improvement. Many contractors offer financing directly. Banks offer home equity loans, or in Texas you can refinance your home and take cash out to complete renovations. Since the Feds dropped rates last month many homeowners are seeing refinancing as an excellent option to fund their renovations.
A cash-out refinance is significantly different from a home equity loan. While a home equity loan is a second mortgage, a cash-out refinance replaces your existing home loan. In a cash-out refinance, you refinance your existing mortgage into one with a lower interest rate. However, you refinance your mortgage for more than what you currently owe and can use the additional money to fund your project.
Both cash-out refinances and home equity loans come with pros and cons.
Your best option, though, when considering the many ways to tap into your home equity is to meet with a skilled financial planner. This professional can take a look at your existing mortgage and your household finances to determine which method of accessing your home equity makes the most financial sense for you and your family.
Interested in seeing if refinancing your mortgage makes sense for you. Contact Churchill Mortgage. Churchill’s approach is different. A loan expert will work with you to evaluate your goals, your financial situation and make recommendations for what will be the best fit for financing your upcoming project.
