Today, more and more people are looking to fix up their current home rather than spend the money to buy a new and improved home. A small investment to redo a garage, enclosed patio, or basement with epoxy floor coating, for example, will not only make homeowners feel good about staying in their home, it will also improve the odds of selling the home quickly if They decide to put it on. in the market. Buying a home likely means entering into a large mortgage loan, and of course, before buying a new home, people must first sell their existing home. During tough economic times, this can be a very difficult task. The truth is that there are numerous advantages associated with fixing up an existing home.
First, home equity loan rates tend to be very low. Although buying a new home can be good when mortgage rates are low, home equity loan rates are much lower. If a person takes out a home equity loan to fix up her house, he can do so at a rate of 4.5 percent or much lower. Home equity loans are extremely tempting and often a less expensive alternative.
Keep in mind that buying a new house involves many additional expenses. These expenses not only include all real estate agent fees, but also title fees and loan origination fees. If a person chooses to remodel their current home, it is much less expensive. Obtaining a loan for a new home can cost several thousand dollars not including realtor fees, just like the sale of the existing home. Also, don’t forget fees to pay for a moving company, moving boxes, and other moving-related expenses. However, imagine what can be done with a few thousand dollars and a new kitchen, bathroom or room addition. In the kitchen, it would be easy to fit new cabinets, new tile flooring, new light fixtures and sink, and new appliances. It is not expensive to add epoxy floor covering in any room. In most cases, a lot can be done to fix up a house, and in the end, people can get the kind of kitchen they were looking for in a new house, for example, without having to go out and buy a new house. .
Qualifying for a home loan can be very exhausting and daunting. This is especially true in tough economic times because mortgage lending companies tend to be much more cautious when it comes to lending people money. Therefore, restrictions have increased and any little thing could prevent a person from obtaining a home loan. Home equity loans are much easier to obtain because even in tough economic conditions, lenders aren’t as cautious.
A great benefit is that when it comes to fixing up a house, people can prioritize projects and do them one at a time when there is the budget to do so. So, if for some reason, for example, the owner of the house loses his job, he will not have to pay a high monthly mortgage. Repair and remodeling work can be postponed until income is available (if the individual does not wish to obtain a home equity loan). Also, many remodeling tools, like epoxy floor coverings, are not very expensive. Although this may not be as satisfying as buying a new home, it is often less onerous and stressful.
