Refinance Home Remodeling Project with Home equity loan
February 21, 2007
How to Refinance Your Next Home Remodeling Project
With the market for existing home sales declining, homeowners are deciding not to sell their homes but upgrade instead, according to Informa Research Services. A recent study conducted by Harvard University’s Joint Center for Housing Studies, estimates that Americans spent $155 billion on repairs and home improvements in 2006, a 2.8% increase from 2005. That number is projected to rise to $160 billion in 2007.
Should interest rates and home appreciation values hold steady, many homeowners will continue to invest their money in improvements to increase the resale value of their existing homes — it’s cheaper to remodel your home than it is to move. However, should the tide turn in favor of higher interest rates and home values depreciate, then the sudden downturn in home equity borrowing could make it difficult for homeowners to recoup their costs once a home is sold. Read more
