Mortgage Refinancing And Reinvesting

How To Get What You Want, When You Want, Without Making A Bad Financial Decision!

Home improvements can be a balancing act. You might want canary yellow walls, and if that is what you really want, go for it. But know that that decision might devalue your home. A new kitchen and bath, now you are talking value upside.

Our advice, if it makes you happy, do it. However, start by looking at projects that make you happy and make you some money.

Here are our value-added suggestions for home improvement projects:

Bathroom Renovations

If our clients are talking about refinancing their homes to make some value-added improvements, we always talk about bathrooms first.

Bathroom remodeling, including replacing tubs, tiles, floors, toilets, sinks, vanities, and fixtures, has a positive payback. But please, stop short of knocking down walls or taking away from closet space. These added features quickly turn a good investment into a money pit.

Landscaping

A splash of color at the front of the house is an eye-catching plus. If you really want to get people’s attention, use one color and vary the plants’ height.

But please, keep the front door visible. And don’t feel guilty about refinancing to get the extra cash to make everything perfect. It will increase your resale value.

Kitchens

Have you have always wanted to redo your kitchen, but the expense always seemed to be too much? You probably looked at the project as an expense. In reality, kitchen projects can help with improving resale values. And, you don’t have to have the cash on hand.

Refinancing allows you to pull some cash, lower your interest rate, and lower your monthly payments. So, you can start the project without having to worry about another “payment.” Start Your Refi Application

So, those are the upside projects. Here are some projects to avoid if you are looking for a return on your project.

Wall to Wall Carpets

So, you went to a friend’s home, and they asked you to take off your shoes. You spend the evening strolling around on pillow-like carpeting that made you feel cozy. Now you want that same blanket-like feeling.

If you want it, go for it. But know new carpets, even high-end carpets, can quickly show signs of wear. Carpeting also has a variety of colors and textures that may not help resale values. If you have the cash saved for the project, go for it. But don’t borrow money for this project.

Wallpaper

We know wallpapering is “coming back,” but it’s not for everyone, and removing wallpaper is a significant undertaking that hurts resale value.

If you want to wallpaper your home, go for it. But don’t refinance or take out a home equity loan for this type of project.

Lavish Lighting

Chandeliers, track lighting, elaborate ceiling fans, and fun fixtures can make for great centerpieces, but they reflect your style, not a true home improvement.

We suggest creating style with movable objects and not home fixtures. Again, if you want it, go for it. But use your savings instead of a cashout refi.