The Pros + Cons of Refinancing Your Home for Renovations
Thinking of renovating your kitchen or building a new patio for summertime fun? You may want to consider a cash-out refinance loan on your home. With a little bit of equity, you can acquire funds for some much needed upgrades. It’s important, however, to do a little bit of research first and make sure refinancing is the best option – and that’s why you’re here. Let’s jump into the pro and cons of refinancing for home renovations.
Refinancing Your Home: The Pros
The biggest pro of refinancing your home is a lump sum up front, which can fund your home improvement project. Additionally, a refinance loan can lower your interest rate and monthly payment. This means you’ll possibly pay less for the loan over time, resulting in significant savings.
Refinancing Your Home: The Cons
While the pros of a cash-out refi are enticing, it’s important to look at the cons as well. Homeowners should consider their financial status before refinancing. Even though it is possible to lower rates and monthly payments with a cash-out refi, the opposite is possible as well. Monthly payments can increase with this kind of loan. And if you can’t afford a more expensive monthly payment or you’re struggling to make payments now, a cash-out refi may not be the best option. Doing a little number crunching prior to refinancing will save you a lot of headache. Check out Market Place Mortgage Corp.’s refi mortgage calculator to help you do the math.
Still Thinking About Renovating?
If you’ve done your homework, looked at your finances, and want to move forward with a cash-out refinance loan for home renovations, Market Place Mortgage can help. Contact one of our qualified Mortgage Brokers to see if Refinancing your home is a good option. Visit www.marketplacemc.com and get started today.