The low mortgage rate environment has led to a refinancing boom in 2020, and the trend is likely to continue with rates holding steady at all-time lows.
A refinance occurs when a homeowner chooses to revise the interest rate, payment schedule, or terms of an existing mortgage loan. There are many reasons to refinance: a change in salary or other personal financial circumstances, a substantial change in the interest rate, or an increase in your home equity.
A cash-out refinance is a great way to take advantage of the equity you’ve built in your home. Although this cash can be used for many things, making home improvements may be at the top of your list.
Many people are looking at their homes differently as they spend more time there. Home improvements could include updating home offices or adding more space. Or, if you are thinking of selling, certain home improvements could add more value to your home.
According to Remodeling.com’s Cost vs. Value report, the following five projects add the most value for resale.
| PROJECT | JOB COST | RESALE VALUE | COST RECOUPED |
| Manufactured Stone Veneer | $9,357 | $8,943 | 95.6% |
| Garage Door Replacement | $3,695 | $3,491 | 94.5% |
| Minor Kitchen Remodel | $23,452 | $18,206 | 77.6% |
| Siding Replacement | Fiber-Cement | $17,008 | $13,195 | 77.6% |
| Siding Replacement | Vinyl | $14,359 | $10,731 | 74.7% |
You’ve been building equity in your home, now may be the time to turn that equity into quick cash to fund a home renovation project.
To learn more or receive a report on the value of a cash-out refinance tailored to you, speak with Home Loan Advisor.
