Financing Your Renovations

If you have chosen to renovate your home then you know the price can easily exceed your predictions. Home renos tend to have what is known as "scope creep." This is when the renovations start and as they progress new things or problems cause there to be more work than originally predicted. This can be difficult to deal with is funding is limited so its a good idea to build contingencies into your financing plans right at the start. That way when the surprises pop up, you will be ready for them.

When thinking about renovation financing there are two likely candidates for you to consider. The home equity loan and the home owner's line of credit. The amount available for a home equity loan is based on the amount of equity that you have built up in your home. This loan is sometimes referred to as a second mortgage. It is calculated by taking the value of your home and subtracting the amount left outstanding on the original mortgage. If you own your home outright, then the amount would be the home's value. As an example, if you have a home that is worth $250,000 and you have already paid off $110,000 then your accumulated equity would be $140,000. The value of the property is what guarantees the loan so the interest rate is low as well as they payments. It is also normal to be able to secure fixed interest rates for such loans.

The other popular financing option is the home owner's line of credit. This loan does not have a finite amount save for the limit which is once again decided by your equity. This is a popular option as it allows for a lot of room when considering costs. The loan operates much like a credit card, with a variable interest rate. This is certainly the most flexible of the options and does not have a definite end date. The line of credit remains open for as long as you need it and do not close it out.

The best way to discern which type of loan is proper for your needs is to confer with a financial expert or banker. Prioritize your needs and try to find a loan that is tailor made for you. Remember that your home is going to be on the line as collateral so be sure to plan your payment schedule carefully and within what you can afford to pay. Make sure that you research all your options here and find what work s for you and for your budget.

Posted by Rick Nall on December 13, 2008 at 12:00 AM

About Rick Nall
Rick Nall is affliated with ReMax Realtec Group Inc., which is located in Palm Harbor, FL. For further assistance please use the contact information located on the right.

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Local Information for Palm Harbor, FL

Latitude: 28.083926 -- Longitude: -82.753947

ZIP Codes for Palm Harbor, Florida	34682 34683 34684 34685
Area Code for Palm Harbor, Florida	727
Time zone for Palm Harbor, Florida	EST

Other Area Cities: Bayonet Point, FL Palm Harbor, FL Clearwater, FL Dunedin, FL Holiday, FL New Port Richey, FL Oldsmar, FL Port Richey, FL Safety Harbor, FL Tarpon Springs, FL Pinellas Park, FL

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Palm Harbor was originally settled by J.C. Craver, who moved to the area in 1877 upon the advice of his physician. A post office was granted in 1888, the same year that the railroad was completed in the area. Palm Harbor was originally called Sutherland, a shortening of Southern Land and Development Company, the group that originally platted the community in 1888. The name was changed to Palm Harbor in 1925. -- Source: Wikipedia.com

Florida 2000 Census Population Profile Map

	Palm Harbor	Florida	United States
Population	59,248	15,982,378	281,421,906
Median age	43.2	38.7	35.3
Median age for Male	41.9	37.3	34
Median age for Female	44.5	40.1	36.5
Households	25,461	6,337,929	105,480,101
Household population	58,053	15,593,433	273,643,273
Average household size	2.28	2.46	2.59
Families	16,910	4,210,760	71,787,347
Average family size	2.79	2.98	3.14
Housing units	28,044	7,302,947	115,904,641
Occupied units	25,461	6,337,929	105,480,101
Vacant units	2,583	965,018	10,424,540

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Financing Your Renovations

Local Information for Palm Harbor, FL

Latitude: 28.083926 -- Longitude: -82.753947

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