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 Linda Sprangel on December 13, 2008 at 12:00 AM

About Linda Sprangel
Linda Sprangel is affliated with RE/MAX mid michigan, which is located in Jackson, MI. For further assistance please use the contact information located on the right.

As of 05/23/12 the Linda Sprangel RePage is ranked at 7,166 with 355 points.

Local Information for Jackson, MI

Latitude: 42.244085 -- Longitude: -84.407206

ZIP Codes for Jackson, Michigan	49201 49202 49203 49204
Area Code for Jackson, Michigan	517
Time zone for Jackson, Michigan	EST

Enter our Photo Sweepstakes and Win $200 for your Jackson photos!

To see random photos for other cities Click Here.

Submit your photos of Jackson and become eligible to win $200. Click Here for details.

Jackson is a city located in the south central area of the U.S. state of Michigan. It is the county seat of Jackson County, Michigan6. As of the 2000 census, the city population was 36,316. It is the principal city of and is included in the Jackson, Michigan Metropolitan Statistical Area. It was founded in 1827, and is named for Democratic President Andrew Jackson. It is the birthplace of the Republican Party, and was also home to one of the Apollo Space Capsules at the Jackson Space Center until the museum closed in 2004. (The Apollo capsule was moved to the Kalamazoo Air Zoo.) It is the home of Jackson Community College and the Michigan Shakespeare Festival. Surrounding communities include Parma, Spring Arbor, Springport, Grass Lake, Clark Lake, Napoleon and Michigan Center. -- Source: Wikipedia.com

Michigan 2000 Census Population Profile Map

	Jackson	Michigan	United States
Population	36,316	9,938,444	281,421,906
Median age	31.3	35.5	35.3
Median age for Male	30	34.3	34
Median age for Female	32.7	36.6	36.5
Households	14,210	3,785,661	105,480,101
Household population	35,212	9,688,555	273,643,273
Average household size	2.48	2.56	2.59
Families	8,666	2,575,699	71,787,347
Average family size	3.12	3.1	3.14
Housing units	15,241	4,234,279	115,904,641
Occupied units	14,210	3,785,661	105,480,101
Vacant units	1,031	448,618	10,424,540

Visit US Census

Financing Your Renovations

Local Information for Jackson, MI

Latitude: 42.244085 -- Longitude: -84.407206

Enter our Photo Sweepstakes and Win $200 for your Jackson photos!

The Leader Spanish Real Estate

ATF Forex Trading

Lingerie & Perfumes

Wedding Singer

QROPS