The Long And Short Of Home Improvement Investments
Is your family outgrowing your home? Tired of fighting for counter space in the bathroom? Have a retro kitchen, but not in a trendy way?
Most homeowners reach a point where home improvement projects just can’t be ignored. While some are minor and require little more than some DIY motivation and a free weekend, others can be quite costly. Parting with your hard-earned money is always tough, but upgrades can pay off almost immediately, and even more in the long run.
Finding The Money
The first step in any major project is figuring out how to pay for it. If you’re hesitant to dip into your savings, or don’t have the cash available, a short-term home improvement loan might be the solution.
While you’ll need to connect with a loan officer to determine your options, your interest rate will be determined by your credit score. And despite using the funds to improve your home, the loan will not put your house at risk if you go into default. Other options, such as a home equity loan, cash-out refinance, or a reverse mortgage for those over 62, may offer a lower interest rate and could be worth exploring for major remodels.
Regardless of how you finance the improvements, don’t miss out on the opportunity to get a quick return on your investment. Efforts to make the home more energy efficient can often result in an immediate reduction of your utility bill. In addition, many state and federal tax benefits are available for “going green.”
Although the federal tax credits for some of these projects have expired, state enticements may still exist. And, a federal tax credit equaling 30 percent of the cost to install solar energy systems, fuel cells, small wind turbines, and geothermal heat pumps will continue through the end of 2019.
Looking Long Term
Ultimately, the payoff for home improvements may not be fully realized until you’re ready for your next home. Researching your neighborhood and its recent home sales is an excellent way to find guidance for what home shoppers value. Choosing a project that makes the home more livable for you now, and will attract more buyers in the future, makes for a win-win investment.
Ready to start your next project? Speak to an Open Mortgage specialist about the lending options that can make it a success. Call 888-602-6626 today.