Refinance Home Loan to Fund the Cost of Home Renovations

Home renovations are an investment. A homeowner who has built up enough equity in the property and a mortgage has at least one funding option. For example, you can opt to refinance your home loan. When refinancing leads to savings, that savings can finance the renovations. Once funding is secured, additional steps are still necessary because the goal is to ensure a successful remodel.

Refinance Home Loan, Then Set a Budget

When you look at the areas of your home that you would like to renovate, you see the surface. Fading paint, mouldy tiles and cracks are some things that are easily visible. Behind the walls, there are other things happening, too. Therefore, after the refinanced home loan goes through, secure the funds. Then, set a budget. It may be tempting to put all the chips in the pot. Instead, leave a cushion. Once your contractor gets into the walls, starts digging or attempts to install pipes, there may be surprises. It is not uncommon to uncover rotting wood, ageing pipes or faulty wiring that requires replacement. If these issues are found, it is very difficult to ignore them after the fact. In many cases, finding these kinds of snags is actually a good thing. You have the opportunity to fix them before they become expensive and inconvenient problems.

So, set your remodel budget and leave a cushion for the unexpected.

Set Your Home Remodel Expectations

A renovation allows for the opportunity to pick out new fixtures, appliances and paint. Bringing your vision to life requires some time and effort. Before the remodel gets underway, set your expectations. Some homeowners enjoy taking trips to the local hardware supply store. This is a good time to relish them. The trips should also be productive. Ask the store associates as many questions as necessary. You may be set on installing a specific shower or sink. Either has to be the right size. Same goes for any other fixtures you pick out. Reality television makes remodels seem easy. Keep in mind that behind the scenes, a lot is happening. The remodellers put in a good amount of work to bring their visions to life. 

Communicate with Your Contractor

Before getting started, the contractor you hire gives you an estimate for the renovations. Keep in mind that it is only an estimate and not an exact quote. If you complete your due diligence thoroughly, your contract will be open to communicating with you throughout the process. Contractors know that each remodel job presents its own surprises. It is not always easy to communicate that with their customer, especially when the surprise leads to additional costs. Staying on the same page as your contractor helps make the remodel successful.  

Refinance Home Loan Conclusion

Remodeling a home is sometimes necessary. Other times it is for pleasure. You can fund your remodel by refinancing your home’s current loan. To find out more about refinancing home loans, our team at Mortgage House is ready to guide you through your options.