Need A Faster and Flexible Solution To Your Home Improvement Needs? A Home Equity Line of Credit Can Lower Your Monthly Payments And Help You Achieve Your Upgrade Goals Quickly

Have you been thinking about a HELOC, aka a home equity line of credit? With favorable 30-year refinance rates and California home loans offering many options for refinancing or using the equity in your home, you’ve got a lot of choices to meet your financial goals. Many people choose a HELOC to pay off high-interest credit card debt, or other personal loans. This is just one use of a HELOC that can meet your financial needs.

Why choose a HELOC instead of a refinance or traditional second mortgage?

A home equity line of credit (HELOC) is different from a home equity loan or a home mortgage refinance. With a home equity line of credit, you have credit available for your use as needed. Once you use the credit, whether for home remodeling and improvements or other needs, like college tuition or a down payment on a vacation home, you’ll pay the funds you use back with interest. You can pay the amount back that you use from your HELOC in different amounts: your HELOC will have a variable and adjustable interest rate, similar to an adjustable-rate mortgage (ARM).

If you want a line of credit with interest rates that are usually much lower than unsecured credit cards, a HELOC offers access to funds that you can borrow, use, and repay on a flexible schedule. Most people choose a HELOC because it offers flexibility and availability, along with lower, yet adjustable, interest rates. 

Is the interest on a HELOC tax-deductible?

If you use your HELOC to improve your home or make home repairs, yes it may be tax-deductible (you need to check with a licensed CPA or tax attorney for your specific situation). If you use the HELOC for other purposes, it probably won’t be deductible. You should consult a tax advisor before using a HELOC to determine what you can and cannot legally deduct on your taxes.

What financial situations aren’t right for a HELOC and which ones are?

A home equity line of credit is secured by the equity in your home. It’s a form of a second mortgage. If you’re struggling to pay your bills, a HELOC isn’t a smart financial choice.

If you’re financially stable and want financial flexibility and low-interest access to credit, a HELOC can be a wise financial choice. One of the best reasons to work with an experienced independent mortgage broker and a home loan professional is their ability to compare different HELOC lenders and their terms and conditions and advise you on your options. Also typically your monthly payments are a lot lower on HELOC used funds since the only payments required are typically interest-only payments.  You can use a HELOC to remodel your home, make improvements, or use the money flexibly to meet your other personal financial, business and family goals.

Sources

https://www.nerdwallet.com/blog/mortgages/heloc-home-equity-line-of-credit/

Using terms from home mortgage and loan refinance categories

 

additional source added by FK

https://www.schwab.com/resource-center/insights/content/is-interest-on-heloc-still-tax-deductible

 

Wondering How You Can Update Your Current Kitchen or Bath? California Platinum Loans Explains How You Can Achieve Your Latest Remodeling Desires Instantly

Do you spend your days watching home remodeling shows? There are dozens of popular shows, each with its own style and approach — not to mention an entire network, HGTV. Add in YouTube and the possibilities for your kitchen and bathrooms are endless. If you’re a DIY type, you may be able to make your remodeling dollars stretch, but most people who’ve started a kitchen or bathroom remodel appreciate professional help. 

Think in cost per square foot, not total

First things first: start thinking like a developer or contractor. While the total cost of your kitchen and bathroom remodel is important, you’ll want to fit your project into cost-per-square-foot ranges. According to HomeAdvisor, the average kitchen remodel costs $150 per square foot. So, if your kitchen is 200 square feet, the total project will cost $30,000 — on average. You can get prices as low as $75 per square foot, but this comes at a cost: the materials will be of lower quality, and workmanship may also suffer. 

According to HomeGuide, bathroom remodeling costs start at a slightly higher per-square-foot cost of $120 and go up to $275 per square foot. Bathrooms are usually about a third of the size of the average kitchen. So, you could start a bathroom remodeling project for $5,000 and of course, spend more if you’re creating a bath oasis together with your master bedroom. An average bathroom of 40 square feet, with a cost of $200 per square foot would be an $8,000 bathroom renovation — mid-range for average project costs according to HomeAdvisor.

How can you get the look and performance you want for the right price?

First, if you’re getting a new bathroom or kitchen designed and built, consider working with a contractor who provides the design and builds services directly through their company. Don’t make the mistake of going around to get “bids” and choosing the most affordable. That will seldom produce the quality you want, and the prices won’t be much less than a full-service remodeling business that specializes in kitchens and baths. Settle on a price for the total job. 

Use a cash-out refinance or a home equity line of credit (HELOC) 

Once you have an idea of what you want your kitchen or bathroom remodel to be, and a general idea of the price, you can pay for it using the equity in your home. You may even be able to refinance your 30-year fixed-rate home mortgage and get extra money to pay for your remodeling project. Another alternative is the home equity line of credit (HELOC) or home equity loan (HEL). While you may find companies that offer independent financing for your kitchen or bathroom remodeling project, your interest rates on these mortgage-based products will always be superior. If you’re tired of your old kitchen or bathroom, why not investigate how you can change it today?

Sources

https://www.homeadvisor.com/cost/kitchens/remodel-a-kitchen/

 

Plus my work w contractors – I’m doing work for contracting software companies right now.

Thinking of Remodeling Your Crib Anytime Soon? Consider a HELOC or Refinance to Upgrade Your Home. Find Out Which Improvements Add the Most Value

HELOC Renovations

Have you been thinking about updating or upgrading your home with a home equity loan, cash out refinance, or home equity line of credit (HELOC)? Every year, Remodeling Magazine conducts a survey of home remodeling projects that keep track of which home improvements can earn back your investment when it comes time to sell your home. While resale value isn’t the only reason you could want to upgrade your home’s appearance or amenities, before you sign your loan documents and get started with your remodeling project, you should probably know the types of projects that do add value, and be aware of the ones that don’t.

Which home improvements add the most to resale value?

According to Remodeling Magazine’s 2019 survey of home improvement projects, the average cost of a project was $63.4 thousand, and the average return-on-investment (ROI) was $37.5 thousand for 66.1% cost/value ratio. This comparison includes nearly every type of remodeling project you could think of, from master bedroom suite room additions to bathroom and kitchen remodels. 

None of the home remodeling projects surveyed have a 100% or greater return on investment, but the top improvement in 2018 and 2019 was an upscale garage door replacement. At an average cost of $3,611, the improved garage door returned over 97% at resale ($3,510). Replacing doors, windows, and entryways all averaged between 70% and 76% ROI.

A wood deck addition returned over 75% of its cost at resale, but composite decks: not so much. At an average cost of almost $20,000, they returned only about $13,200. 

If you’re thinking about doing your kitchen over, it’s worth considering the scale you’re willing to invest in. Major kitchen remodels costing over $130,000 returned less than 60% of their investment, while minor kitchen remodeling projects of about $22,000 came the closest to paying for themselves, at an 80.5% ROI.

You may be doing some remodeling projects for yourself, and your enjoyment of your home should always come first. Over the years and in general, home improvement projects that add more to the value of your home tend to fall in the “curb appeal” category, like landscaping, entry doors, window replacements, and new, upgraded garage doors. 

With home mortgage refinance rates expected to remain low for 2020, this year could be the time for you to consider making changes to your home. A mortgage loan and refinance professional can help you to find the right loan product to pay for your remodeling project.

Sources

https://www.remodeling.hw.net/cost-vs-value/2019/key-trends-in-the-2019-cost-vs-value-report 

https://www.realtor.com/news/trends/2019-home-renovations-best-and-worst/