Docstoc

4_Ways_To_Finance_That_Renovation

Document Sample
4_Ways_To_Finance_That_Renovation Powered By Docstoc
					Title:
4 Ways To Finance That Renovation


Word Count:
497


Summary:
So you have finally purchased that 19th century farm house that you have always pictured yourself living in
the problem is how do you finance the restoration? It is easy to get mortgages for the value of the home even
a little extra if you have a good credit rating but today a renovation can cost more than the original purchase
price of the property.


The first option s to look at your available assets. You can get a home equity loan if there is any equity in
your house. Us...



Keywords:
home loan, finance, mortgages, loan, construction, renovation



Article Body:
So you have finally purchased that 19th century farm house that you have always pictured yourself living in
the problem is how do you finance the restoration? It is easy to get mortgages for the value of the home even
a little extra if you have a good credit rating but today a renovation can cost more than the original purchase
price of the property.


The first option s to look at your available assets. You can get a home equity loan if there is any equity in
your house. Use your credit cards for short term renovation or borrow money from your parents these ideas
are only usable in a short term renovation once the renovations completed you should be able to refinance
your home and pay of the relatives, high interest credit cards and roll your home equity loan into your
mortgage.


You may be able to get a “line of credit” a line of credit is usually easy to get up to $30,000.00 with out
much effort and with a minimal amount of paperwork these lines of credit are good for short term
renovation that are under the $100,000.00 dollar mark. The interest rates tend to be on the high side but you
can draw out the money as you need it and only pay interest on the cash that has been withdrawn and again
once the renovation is completed you can refinance and pay of the line of credit and combine all your loans
in the mortgage.


Depending on the scope of your renovation you may be eligible for store loans and credit card offers. Many
home stores now have their own credit cards they offer deal such as interest free credit for one year you may
be able negotiate a longer term. The important thing here is to pay off the loan/credit card prior to the free
period expiring otherwise the interest will revert back to the initial purchase. Some stores will also offer you
a interest free construction loan for your project the terms of these construction loans vary from store to
store read the fine print carefully like the credit card deals these usually have a time limit. Again one the
renovation is completed you can refinance and pay off the loan avoiding high interest dept.


Construction loans are generally reserved for larger projects this kind of loan is a short term loan the money
can be taken as needed and interest is paid on the money that has been taken out. Almost everyone now
offers construction loans this completion has brought the costs of these loans down. The nice thing about
construction loans is that you can withdraw the money as you need it once the renovation is done you can
refinance and have one closing and one mortgage. One thing you should keep in mind when shopping for a
construction loan is the fees and finance charges as always keep an eye on the fine print for hidden charges.




discount life insurance

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:7/3/2012
language:
pages:2