Think You Can't Afford To Remodel Your Home? Think Again!

Think You Can't Afford To Remodel Your Home? Think Again!

Posted: 2021-12-23 | Author: April Nye

Millions of homeowners are cashing out their home equity to remodel their homes. A cash-out refinance could be a great option for you too!

If all this extra time spent at home has made you realize you’d like to do some updating, we have an idea for you. Why not look into cash-out refinancing to cover the cost of home improvements? With cash-out refinance rates being incredibly low, you may be surprised to see that your monthly mortgage payment may not increase by a significant amount, and in some cases it may even be lower. Plus, depending on the home improvement project, it could also increase your home’s overall value.

Why Use A Cash Out Refinance For Home Improvements?

We are currently seeing the best cash-out refinance rates we’ll likely see for a long time. Cash-out refi rates are projected to increase at some point in 2022, especially later in the year, so it’s a good idea to take advantage of the explosion in home values and low rates to tackle some of your home’s to-do list. Since some home improvement projects are costly and require financing, why not avoid that headache and borrow from yourself?

When you do a cash-out home refinance, you’ll get a loan based on the current market value of your home that is large enough to pay off your existing mortgage and have money left over for you to spend as you please. With cash-out refinance mortgage rates being as low as they are now, this is a great way to finance large home improvement projects. Other options like using a credit card or personal loan would charge much higher interest rates on the money you borrow which would end up making your home improvement projects more expensive.

Here are some ideas of the kinds of home improvement projects you can do with the help of a cash-out refi:

Use A Cash-out Refinance To Remodel Your Kitchen

One of the most highly desired and expensive remodeling projects is the kitchen. This project could range in price from $5,000 for a very basic remodel to closer to $100,000 for a high-end complete remodel. The good news is that a kitchen remodel retains its value when the homeowner sells their home in most cases. Still, finding tens of thousands of dollars to replace cabinets, appliances, countertops, flooring, lighting, and whatever else you envision in your dream kitchen is hard to come by.

It’s a good idea to pay close attention to current cash-out refinance rates to ensure there is not a more practical and inexpensive solution to financing your home improvement projects. We’re always here to help you with that and provide market updates whenever you have questions.

Other Home Improvement Projects You Can Finance Using A Mortgage Cash-out Refinance

Some other popular home improvement projects that you should consider thanks to the low cash-out refinance interest rates are:

  • Swimming Pool – Arizona summers are hot, a swimming pool is a must-have! Having a swimming pool built in your yard is a massive project, but it will get a ton of use and be a place where memories are made, especially if you have kids.

  • Bathrooms – Turning an old, outdated bathroom into a luxury spa will do amazing things for your mental health as well as your property value.

  • Home Office – With so many people switching to a more permanent work from home model, why not build yourself a home office designed to keep you productive. Depending on permitting and restrictions, you could construct a separate unit from your home so that you still feel like you’re leaving home to go to work.

  • Outdoor Kitchen and Living Space – We may complain about the hot summer months, but realistically, Arizona has fantastic weather most of the year. If you have the space, use a mortgage cash-out refinance to build an outdoor living room and outdoor kitchen complete with space to cook will be an incredible addition to your home. Spending more time outdoors will be good for your health and will encourage your family to spend more time together.

  • Repairs – While repairs are not as fun as some of the other projects listed above, they may be necessary. If you need a new roof or have water damage somewhere in your home, you may want to consider using your equity instead of a credit card to make these essential restorations.

Ready To Remodel Your Home?

If any of these renovations sound like something that would be worthwhile, and you would like more information about cash-out refinance interest rates, we are here to help you through the process. Doing a mortgage cash-out refi is quick and easy, and you can get started on your home improvement projects in just 20-25 days on average. Contact us to get more information or even get the process started.

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