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 Christopher G Gray on August 16, 2009 at 04:35 PM

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Christopher G Gray is affliated with Ebby Halliday, REALTORS, which is located in Dallas, TX. For further assistance please use the contact information located on the right.

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Local Information for Dallas, TX

Latitude: 32.799528 -- Longitude: -96.787166

ZIP Codes for Dallas, Texas	75201 75202 75203 75204 75205 75206 75207 75208 75209 75210 75211 75212 75214 75215 75216 75217 75218 75219 75220 75221 75222 75223 75224 75225 75226 75227 75228 75229 75230 75231 75232 75233 75234 75235 75236 75237 75238 75239 75240 75241 75242 75243 75244 75245 75246 75247 75248 75249 75250 75251 75252 75253 75254 75258 75260 75261 75262 75263 75264 75265 75266 75267 75270 75275 75277 75283 75284 75285 75286 75287 75295 75301 75303 75310 75312 75313 75315 75320 75323 75326 75336 75339 75342 75346 75353 75354 75355 75356 75357 75359 75360 75363 75364 75367 75368 75369 75370 75371 75372 75373 75374 75376 75378 75379 75380 75381 75382 75386 75387 75388 75389 75390 75391 75392 75393 75394 75395 75396 75397 75398
Area Code for Dallas, Texas	214
Time zone for Dallas, Texas	CST

Other Area Cities: Ennis, TX Waxahachie, TX Frisco, TX Pleasant Valley, TX Dallas, TX Addison, TX Carrollton, TX Irving, TX Richardson, TX Plano, TX Highland Park, TX University Park, TX Garland, TX Grand Prairie, TX Mesquite, TX Cedar Hill, TX De Soto, TX

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Dallas is the third-largest city in the state of Texas and it is the ninth-largest in the United States. The city covers almost 400 square miles and is the county seat of Dallas County. As of 2005, U.S. Census estimates put Dallas at a population of 1,213,825. The city is the main cultural and economic center of the 12-county Dallas–Fort Worth–Arlington metropolitan area—at over 5.8 million people, it is the fifth-largest metropolitan area in the United States. Dallas is one of 11 U.S. world-class cities, as ranked by the Globalization and World Cities Study Group & Network. Dallas was founded in 1841 and formally incorporated as a city on February 2, 1856. The city is known globally as a center for telecommunications, computer technology, banking, and transportation. -- Source: Wikipedia.com

Texas 2000 Census Population Profile Map

	Dallas	Texas	United States
Population	1,188,580	20,851,820	281,421,906
Median age	30.5	32.3	35.3
Median age for Male	29.8	31.3	34
Median age for Female	31.3	33.4	36.5
Households	451,833	7,393,354	105,480,101
Household population	1,167,416	20,290,711	273,643,273
Average household size	2.58	2.74	2.59
Families	266,789	5,247,794	71,787,347
Average family size	3.37	3.28	3.14
Housing units	484,117	8,157,575	115,904,641
Occupied units	451,833	7,393,354	105,480,101
Vacant units	32,284	764,221	10,424,540

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Financing Your Renovations

Local Information for Dallas, TX

Latitude: 32.799528 -- Longitude: -96.787166

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