If you’ve been living in your current home for several years, you might be thinking about making some improvements. And as you start to look at floor samples and paint swatches, you might realize that you don’t have the budget for the kinds of upgrades you want. But what if you could utilize the current value of your home to not only get the money you need for renovations but also increase your home equity in the process? With cashing out on a refinance you can do just that.
At BrightPath, our mortgage lenders will utilize their unparalleled knowledge to guide you through the process of cashing out on a refinance with ease.
What Does Cashing Out on a Refinance?
When you cash out on a refinance, you use your current home equity to renegotiate a new mortgage rate. This allows you to borrow more than the loan balance so you can receive the difference in cash. And while this money can be invested in a variety of ways, there are many benefits to using it on home renovation.
The Advantages of Cashing Out on a Refinance to Renovate Your Home
There are many advantages to using your cash out refinance to make home improvements. Since the cost of home renovation projects can quickly add up, cashing out on a refinance makes them much more affordable. And by using this money to make home improvements, you increase the value of your home, which helps build equity.
If you are going to use your cash out refinance on home renovation, it is crucial to make upgrades that are guaranteed to add value to your home.
What Kinds of Renovations Can Increase my Home Equity?
While there are a plethora of improvements that can be made using the money from a cash out refinance, it is crucial to pick projects that are guaranteed to elevate your home equity.
- Replacing essential home features. This includes upgrades to major functional components of the home like the roof, HVAC system, hot water tank, septic system and more. Not only will this entice buyers, but it can potentially help you save on homeowner insurance premiums.
- Remodeling your kitchen. When searching for a home, buyers are always attracted to luxury features like granite countertops, kitchen islands, modern appliances and upgraded flooring and cabinets.
- Sustainability initiatives. While the cost of creating a green home may seem high at first, there are many long-term benefits that make it a worthwhile investment. These include the positive impact on the environment, improved indoor air quality, reduction in energy use and overall savings on maintenance costs.
- Adding a bathroom. If there are underutilized spaces in your home like extra rooms or unused closets, the addition of a bathroom can be a great way to increase equity value, especially if you only have one bathroom.
- Finishing your basement. Consider ways buyers could be interested in utilizing this space. Popular options include converting it into a game room or second living room. The more versatile the space, the more potential appeal it will have to buyers.
- Converting the attic. If you don’t have much use for your attic, consider remodeling it into a bedroom or small apartment. This is an especially attractive feature to buyers looking for additional space to house aging parents or extended family members.
Let the Experts at BrightPath Help You Cash Out on a Refinance to Improve Your Home Equity
There are many benefits to using a cash out refinance to make home renovations that increase home equity. Contact the mortgage specialists at BrightPath today to learn more about your refinance options.
When you work with BrightPath, you are guaranteed to get on the path to a better and brighter future.