Remolding and improving your home is a great idea. Spending the money in the kitchens and bathrooms is a no brainier.

If you are hiring a professional make sure to ask for references. Verify with your contractor whether who will be responsible to get any necessary permits from the appropriate government agencies. Don’t cut corners by trying to avoid paying for a building permit. Conforming to local building codes ensures that your improvements will be done properly. When you are selling, if the appraiser notes improvements that are not of public record, additional and sometimes costly inspections could be required to make sure that the home is up to code and doesn’t violate zoning restrictions.

People have varying tastes. Avoid doing anything very out of the ordinary to your home that cannot be easily changed, but express yourself. Purple paint never hurt anyone!

When planning, consider carefully whether or not your schedule and know-how will allow for the successful completion of your project. There is nothing worse than realizing that you have bitten off more than you can chew halfway through. Sometimes doing it yourself costs more money in the long run, not to mention the stress of trying to live in a construction site! Professional builders always calculate at least a 5 to 10% “contingency” when estimating a job for unforeseen delays/supplies so it’s a good idea to do the same in a do-it-yourself project.

I you are doing it yourself, utilize the knowledge and advice of the employees at your local home improvement center. They can be a wealth of information and save you a lot of headache and money in the long run.

No matter where you live, kitchen and bathroom remodels generally have the best return on investment. Updated flooring (other than in bedrooms, carpet is considered pasé) also has wide-spread appeal. Anything which improves energy efficiency helps attract buyers. New windows and doors do just that and improve a property’s look inside and out.

Some improvements can actually cost a seller money. A swimming pool is a good example of an “improvement” which is considered a negative adjustment to value in certain areas of the country. Pools require additional homeowner’s insurance due to liability for injury/death, they are costly to maintain, and many areas of the country have water-use restrictions.

Over-improving a home can also be a bad investment. For example, a house located in a neighborhood with homes in the $250,000 range would not appraise significantly higher because it had lead-crystal chandeliers or a 6-car garage. Even if the home is “worth” $350,000, people looking for a $350,000 home want to buy in a neighborhood with similarly priced homes. Values are determined not only by the condition of the subject property but also the value and type of homes which surround it.

The things you will want to avoid are adding items such as hot tubs, suanas and swimming pools. While one of these items may appeal to you they may not appeal to a large percentage of buyers and do little to increase your homes value and may actually cause your home to sit on the market longer should you ever decide to sell it.

Using Your Equity to Make Home Improvements - If you have equity in your home, you can use that equity to pay for improvements to your home.

Home Equity Loans come in two forms, a one time loan and a line of credit. A one time Home Equity Loan gives the borrower the funds in one lumpsum, and the borrower repays the loan in equal payments over the loan term. A Home Equity Line of Credit works like a credit card account. The homeowner draws funds from the credit line when needed, and needs to pay only the interests on the outstanding balance.

A home equity does not have to be used for improving the home. A home equity can be used for a rainy day, starting a business, purchasing a car, consolidating debt or any other reason that you may want.

Depending on the costs of your planned improvements there are a couple types of loans you may want to consider. If you have sufficient equity in your home you can look at a home equity loan or line of credit to fund the work. If you are planning a major renovation, there are also rehab loans that will base your loan off of the "as completed" value of your home.

There are rehab loans available where the work is completed by a licensed contractor, as well as loans available where the owner completes the work themselves.

You should plan wisely to determine whether the improvements you are making to your house would add any value to your property. Some improvements are only cosmetic and do not add value. You should talk to your local appraiser or mortgage broker to find out what improvements add value to a home during an appraisal to aide in your home improvement planning.

The interest on a home improvement loan, whether it is used for making home improvements or paying off high interest credit cards may be tax deductible.

The need to remodel a kitchen or bathroom, adding a swimming pool, or building an addition on your house are some of the most popular reasons for using your equity to make home improvements.

Often times, people will obtain a home equity line of credit in order to draw on the funds for their home improvement when needed and therefore reducing the cost of the money overtime by not paying interest on money they do not yet need.

Using your equity for home improvements is a great reason for a refinance, because you are using your equity to increase its self. The home Improvements you do to your house will only increase the value of your home.

Using the equity in our home to finance home improvements is a great way to get low cost home improvement funds. The interest rate will usually be lower than other forms of financing plus the interest is usually tax deductible.

Home Improvement Loans - Home improvements can easily be done by tapping into the equity from your home. The money can be used to make necessary upgrades and add value to the home.

Home improvement loans with low interest rates are available for most types of home improvement projects. From kitchen and bath remodels to landscaping and roofing.

A HELOC (Home Equity Line Of Credit) loan will allow you to draw equity from your home as you need it to pay for improvements.

Home Improvement Loan - If youre looking to take out a loan to make improvements on your home consider refinancing your mortgage.

Renovation loans are also available to homeowners as well as investors. When the appriaser comes out to assess the value of the property, he or she will also take into consideration the improvements that will be made. They will report two values: as-is and after completed. A renovation loan will be based on the after completed value. The funds are disbursed similar to a construction loan.

The Department of Housing and Urban Development (HUD), through the Federal Housing Administration, offers many programs that insure lenders against loss due to homeowner defaults. The 203(k) is a program that is designed to encourage lenders to make mortgage loans secured by properties that are in need of improvements or modernizations. The loan amounts of 203(k) program are determined based on the values of the improved properties.

Also, by borrowing against your home, the interest that you pay will increase your current tax deductible mortgage interest. If you were to finance your home improvements with Credit Cards, or through a Personal Loan, the interest would not be tax deductible, and the interst rate will always be higher than that of a Home Equity Loan(Second Mortgage) or Home Equity Line of Credit.

Improvements such as kitchen remodels, room additions, bathroom additions or remodels often will raise the value of a home for a greater amount than is paid for the improvement.

In such cases, it makes good financial sense to access funds for such improvements by borrowing against the home.

When making improvements with your home be sure to make sure you have researched your intended improvements. Just because you install a $30K pool does not mean your home will be worth $30K more.

If you need to improve your home you can get the cash by refinancing. Home improvement is a common reason for refinancing. Often people increase the value of there home by doing improvements from the cash they receive by refinancing.

When looking to apply for a home improvement loan you should consider a refinance of your current 1st mortgage, a second mortgage or a HELOC (Home Equity Line of Credit). All of these options will provide you with great rates, tax deductible interest and the money you need to complete your home improvements. Home equity loans are revolving lines of credit that work pretty much like a credit card. 2nd mortgages are term mortgages that are set for a specific term such as, 5 years, 10 years, etc... Another thing to consider is that almost all mortgages and HELOC's have a grace period when making your payment, usually 5-15 days. A credit card has no grace period and if you are 1 day late more than once or twice in a 6 or 12 month period of time they will increase your rate.

Some second mortgages allow you to take up to 115% and 125% of your property value. If you're planning on making serious upgrades consider this option.

If your property is worth $300,000 the 115% loan allows you to borrow up to $345,000.

If your property is worth $300,000 the 125% loan allows you to borrow up to $375,000.

Home Improvement Loans are great for the borrower as they are able to take some of thei equity they have built and improve their investment so hopefully when they do decide to sell can get a sell at a greater price than if they had not done the home repair loan to begin with.

You can usually borrow up to 80% of the value of your home and even up to 100% in some cases - minus any liens against the property. The interest you pay is usually tax deductible. (Consult your tax advisor for exact details.) A home improvement loan can only be used for improvements performed by a professional contractor and inspections of the work are required in most cases. You can borrow from $1,000 to $150,000 with terms ranging from 3-15 years.

You can even take out a loan using the future appraised value of your home. This loan would lend off the future value as high as 90% and sometimes higher. It is best to use this loan when you are short on equity for home improvements.

Home Improvement Loans - A home improvement loan can be obtained by taking out a second mortgage or a home equity line of credit. You can utilize the equity in your home to obtain one of these second liens on your property.

The loan can be either an adjustable or fixed rate home equity line of credit. Most equity lines for home improvements will have an interest only "draw period".

Most equity lines of credit are based off of the prime rate. Your margin over or under prime will be determined by your credit profile, documentaion, and loan to value.

Home Improvement - Increase home value vs marketabilty

When contemplating a home improvement project it is important to understand the difference between improving the marketablity of your home versus actually increasing the value of your home.

While any improvement to your home inexpensive or expensive can increase the likelyhood of a faster sale, they do not necessarily increase the value of your home.

The actual value of your home is determined by an appraisal. The appraisal takes many things into consideration when determining the value of your home. Some important factors are condition, age, square footage, number of bedrooms and baths and location. Then he/she compares your home to other like properties in the surrounding area that have sold.

Don't understimate the value of proper landscaping and cleaning when showing or appraising a home. A well manicured lawn, healthy and well laid out trees & plants, fresh paint, gleaming floors, and clean exteriors go a long way toward boosting the marketability and perceived value of a property.

Some improvements that add value in the short term are: Adding square footage of living space such as additional bedroom, sunroom, playroom. Adding on a garage or deck will also increase your homes value.

Some of the best additions for adding value to a home are a second bathroom and energy efficent windows. Before you do any home construction project remember to check any local building codes and aquire the proper permits. Additions and modifications done to a home without a permit can cause trouble if you decide to sell your home at a later date.

If you have a home that is outdated then chances are you will not receive full value for the home but even if you do, it might have to sit on the market much longer than if you made some simple improvements. If your interest on your payments are $1,000 dollars a month and it sits on the market 3 extra months then you have actually spent an extra 3K on that property to get it to sell. Sometimes it makes sense to look at this and maybe take 2 or 3K and spend on paiting and misc. updates to make the home sell much faster. A good local realtor can help you determine what is selling in your neighborhood and help with the decision of where to place the money for the updates. A simple painting on the interior will do wonders for a home. But don't loose sight of the curb appeal too. If a potential buyer doesn't like the look from the curbside, chances are they won't get out to look at the inside.

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