Shoppers are "getting real" - so we are officially declaring 2019 the year of Being Real, which includes using all-natural products, focusing on sustainability, buying "Made in the USA" and being realistic when it comes to decorating and living. The world isn't perfect (and you don't have to pretend that it is), but you can also do something to make your world more perfect. Whether you want to install all new hardwood floors, or remodel that dated Master Bathroom, we can help you. But for many, the larger question is how to pay for it.
If paying cash is not an option for you, you need to look for ways to finance your project. There are essentially three ways to finance a remodeling project, a cash- out refinance, an equity line, or a renovation loan. The first two options can work well if you have a lot of equity in your home today. Renovation loans work well in all situations because the amount you can borrow is based on how much your home will be worth after you make the improvements.
Let's take a look at the cash out refinance and equity line options together because they work very similarly. When you apply for one of these loans the bank will order an appraisal to determine your home's current value. The bank will then lend you up to 80% of that value for the cash out refinance and typically 90% for the equity line. From that amount you simply subtract your current mortgage balance to determine the amount you net for your project.
The primary difference between a cash-out refinance loan and other home equity loan options is that a cash-out refinance loan converts one mortgage into a separate larger one. With a traditional home equity loan, you take on a second mortgage at a fixed or variable rate with up to 30 years for repayment.
Again, these options work well if you have a lot of equity in your home. But what if your current loan balance is at or above 80% of your current value? What if you need more than $10,000 to $20,000 for your project? This is where the renovation loan saunters in to save the day.
The renovation loan was designed with you and your project in mind. It has two huge advantages that make it an extremely useful financing tool. The first is that the bank bases the amount they will lend you on the after improved value of the home, so you get credit for the upgrades and additions. The second advantage is that if you meet credit requirements, the bank will lend you up to 95% of the after improved value if needed. By the way, this product can also be used to purchase a fixer upper and finance the improvements into the same loan.
Todd Sheppard, Fidelity Bank
Construction and Renovation Lending Specialist
According to HousingWire, as of September 2018, the amount of home equity accessible to America's 44 million homeowners has surpassed $6 trillion in untapped equity, the highest level in history.
Sean Patrick Trombetti, Reliant Mortgage Solutions
So the economy is improving, the money is there to be had, and we are here to help you get started!
Design Tip for 2019
Ready to go green? Our desire to connect with nature has brought an array of delicious green hues to the forefront of design. "Earthy, rich greens are absolutely on the rise in homes across the country," Erika Woelfel, Vice President of Color and Creative Services at The Behr Paint Company tells us.
"People are looking to create an oasis at home where they can escape the stress of the world and technology, and green creates that cocooning effect," she says. Green engages the senses and symbolizes life, growth, and renewal thanks to its association with nature. For those who aren't afraid of color, Woelfel says green is a great choice because it is generally gender-neutral and universally-loved.
How Much Does It Cost?
Did you know we can make you an area rug from any carpet in the store? We recently installed carpet on the stairs and upstairs hall, and created four custom-sized rugs, 2 large and 2 small, for a customer, for a total under $3000. Choosing to make custom rugs from Broadloom carpet gives you thousands of choices, between the carpet patterns, plushes, and textures, and all their colors. If you have wonderful hard surface floors that need a rug, consider a custom made rug from Broadloom.
I Was Floored by Enhance
Jim in Marietta says "They are the best. They are not the cheapest, they are not the most expensive, and the quality of the work is top-notch. You will not be disappointed."
Thanks, Jim! We're glad you are happy!