 Refinance
for Remodeling
Refinance for Remodeling
Are you looking to
refinance
your home for
some home remodeling?
If so, it is easy to do and there are many home refinance
options; using the equity in your home for a
refinance for remodeling
is also a good idea as it is tax deductible. So, how do you
begin?
Once you and your
contractor have determined the amount of money for your home
remodel, call your trusted loan officer, or lender, to determine
which loan option is best for you. If your existing first
mortgage is higher than the going rate, you may wish to
refinance
your first mortgage and draw out extra cash to pay
for
your home remodeling.
If your current first is at a good interest rate already, you
may wish to look at other options for the cash needed.
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Two
good options are:
-
A home equity line of credit—this
is an equity line of credit that you can
put as a 2nd instead of
refinancing
your first
for
your
remodeling.
The benefits of a home equity line of
credit are that you only pay interest on
the amount you draw out, you can pay
down and borrow against your home equity
line as needed, and you can usually get
one for little or no cost. The downside
is that the interest rate is variable so
it may go up.
-
A home equity loan
is also a good alternative for
refinancing
your first
for
remodeling
as you can also get one for little or no
cost. However, as a 2nd trust
deed, the interest rate will be at a
higher rate than a first mortgage. The
difference between the home equity line
of credit and the home equity loan is
that the home equity loan is fully
amortized, a 30 years due in 15 years,
at a fixed rate of interest.
The
options are there to
refinance
for
your
remodeling.
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