three options that make paying for renovations as easy as pie
Whether you are moving into a new house or you just need a change (goodbye carpet!), renovations are a fact of life. The good news is, when it comes to paying for renovations, you have a few options.
Purchase plus improvements
If you are buying a house that needs some work, you can work the costs into your mortgage. Ask your lender about ‘purchase plus improvements’.
Cash back mortgage
Another option is a cash back mortgage. This gives you 5% of your mortgage amount to help cover costs like furniture, appliances, or (you guessed it) renovations. This is only available for five, six, and seven-year fixed rate terms, so you can be certain that your great rate will be locked in no matter what happens in the market.
Home equity LOC
Lastly, if you already have a house and have some equity in it, you can get a home equity line of credit. In a nutshell, your home equity line of credit acts as a revolving line of credit. You can access up to 80% of the value of your home and you will only pay interest on the amount you actually use. Enjoy the flexibility of accessing the money when and where you need it, and then pay down the balance at any time. And the best part? Your home equity line of credit is tied to your mortgage, so it comes with an exceptionally great rate!
For additional information on any of the options above, please contact one of our lending associates.