How to Make Decisions About Your Mortgage Refinance Money
These days, most major home renovations can be pretty costly, amounting to total budgets that don’t speak to the reality of what many homeowners have saved for a rainy day. With great rates available for mortgages, refinancing one’s home and taking equity out has become a realistic way for homeowners to get the money they need for large-scale projects around the house.
If you’re reading this, then the idea of refinancing your home to pay for your future remodeling projects is likely front of mind. But savvy homeowners will want to consider ROI on various house projects before spending the money and taking the leap. For example, will the project increase your home’s value a little, or a lot? Will you be spending more money than you’ll be adding to your home’s value? Refinance your home for remodeling projects when the ROI says it’s worth it. With that in mind, here are a few renovation projects worth refinancing your mortgage for.
Doing a Minor Kitchen Remodel
Not all kitchen remodels are gigantic in terms of scope, and given the ROI of a minor kitchen upgrade, around $21,000, this could be a wise project to take on. If you want to get the best bang for your buck, a minor remodel tends to be better than a major one, allowing homeowners to recoup as much as 81% of total amount spent.
Consider the Home’s Exterior and Work on Landscaping
Home improvement projects that focus on your home’s exterior often deliver significant returns, and landscaping is among the best. Hire a professional designer for around $1,500 and be sure to add another $3,000 – $4,000 for landscaping. After that, you just have to perform the upkeep to maintain the new look, and you will earn 100% ROI for your investment.
Bath Remodel – Small
If you plan to replace the sink, toilet, bathtub, bathroom floor, fixtures and vanity in your bathroom, plan on spending right around $11,000. Here, the money will be well worth it because you’ll recoup 102% of that cost in home resale value. More substantial bathroom remodel projects will run as high as $60+k, but you’ll recoup around 56%, making minor projects a better bet.
Buying and Installing a Brand New Garage Door
Getting your home a brand new garage door can cost anywhere between $3,000 and $4,000. If you have the money saved up already, you may not need refinance to get the job done. But if you choose to spend your re-fi money this way, then know that even a simple project like this one could recoup nearly 98.3% of the total cost in your home’s value.
Wood Deck Addition
If you’re able to install a standard-sized wood deck, the cost could be north of $10K, but the impact on home value is big. With a new deck, you can recoup nearly 83% of the project’s costs.
Get New Siding for Your Home’s Exterior
Just by replacing the siding on your home with brand new material can be money well spent, at around $15,000 – but spend that kind of money, and you’ll recoup nearly 77% in your home’s improved market value.
