Most homeowners at one time or another have thought of improving the home they live in. It might be an addition, remodeling the kitchen or bathroom, or perhaps repairing a roof that has reached the end and needs to be replaced.
Today there are several options available to homeowners who are looking to do some improvements to their property.
Interest rates are still at historic lows. If you have an interest rate above 5% and have been contemplating refinancing for a lower rate you may also be able to take some additional equity out of your property and use it to improve the property. Typically this would be done with a conforming loan. Typically you would be able to borrow up to 85% of the equity of your property.
Home Equity or second mortgage. This is when you take our a second loan on your house. You are able to use this money for improvements to the property and do not have to touch the first mortgage. This makes sense for home owners who have equity and because of low interest rate on their first mortgage it would not make sense to refinance. Typically the interest rates on Equity or Second mortgages are variable although fixed rates can be available.
If you do not have much equity but still need to do improvements HUD offers 203k rehab loans that allow you to finance the costs of the improvements into 1 loan. This is usually the case if they improvement are more of a structural nature. An example of allowable improvements are additions, roof repair, electrical or plumbing upgrades.
Please call me today and I can discuss what options are available to you.
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Thanks,
Craig Thibeau/Senior Loan Officer
North East Financial
210 South Main Street
Middletown CT 06457
Ph 860-334-1354
NMLS # 398576 Company NMLS # 117273
craig@northeast-mortgage.com