Home Improvement 101
(ARA) – You made some smart decisions about the housing market and
now you’re sitting pretty in a house with some equity. Or, maybe you’ve
been in your home for a while and the house has equity but is short on
modern style and convenience. It may be time to tackle a home project
that will improve both resale value and your enjoyment of the house for
as long as you live there.
But how do you decide where to put your money? What home improvements
will provide the biggest returns in terms of value and comfort? And how
should you pay for the improvements? Here are some basic tips for
deciding how to spend your home improvement dollars:
* “For most people, their home is their single biggest investment.
Protect and grow that investment by selecting improvements that will
increase the home’s resale value,” suggests Matt Wells, a senior vice
president for LowerMyBills.com. Kitchen and bath remodels consistently
yield high cash returns at resale time. Also, any improvements you make
in these rooms will elevate their comfort and convenience for your
entire family. In general, real estate experts agree that kitchens and
baths are at the top of the list of good home improvement investments.
* If you already have a gourmet kitchen and you like your bath the
way it is, then consider your family’s lifestyle when evaluating other
possible home improvements. If you have more children than bedrooms for
them or your dining room doubles as a family room and play area, an
addition might make sense for you.
* Even if you’re undertaking the home improvement primarily to boost
your own enjoyment of your home, it’s important to consider resale
value. Remember that potential buyers might not share your tastes and
while it may be easy to paint over the bright orange walls of your
sunroom, replacing loud tiles or fancy-shaped windows could be a much
more expensive fix come resale time.
* Do your homework on financing options. A poor financing choice
could mean you’ll be paying high interest on your home improvement long
after the last workman has left your house. Consider a cash-out
refinance which allows you to refinance your mortgage for more than you
currently owe, leaving cash on the table for you to put towards your
improvements. The interest rate on a cash-out refinance is usually lower
than what you would get from a credit card. Just remember to be
responsible, you don’t want to take out so much cash that you put your
home at risk. Also, remember to check with your tax advisor because the
interest is likely to be tax deductible. Web sites like
www.LowerMyBills.com can help you get competitive refinancing quotes.
Even if you don’t need to pull cash out, a refinance might still be a
wise move. “Interest rates are still near their lowest point in nearly
40 years,” Wells notes. “Homeowners who bought their houses a few years
ago may be in a good position to refinance at a lower rate and free up
more cash each month to put towards improving their investment and their
lifestyle.”
To shop for competitive refinancing options, visit
www.LowerMyBills.com.
Courtesy of ARAcontent
