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What options are available to pay for remodel

I would like to remodel my house. My Bay Area home has equity, especially with the recent market surge in home prices. What is the best means for financing the remodel?

Can I have the loan amount added as part of my mortgage, thereby spreading the loan payment across the 20years I have left on my mortgage? What about govt. loans for home improvement?

Thanks
KT
  • September 02 2013 - Santa Clara
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Answers (3)

203k loan is designed to help home owners who are in need of financial help for home repairs, renovation, and even new purchase.

Talk to some experts in 203k loan for more details.
  • September 07 2013
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With the right lender, you have several options including a cash-out refinance, fixed 2nd mortgage or Home Equity Line of Credit (HELOC), FHA 203k loan, and Fannie Mae Homestyle loan.  Which option fits your situation best is up to you.  I would be happy to discuss each with you and help you select the best option.

Charles Edington
Primary Residential Mortgage, Inc.
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  • September 07 2013
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There are grants and government money available for home improvement projects. You would need to check with the government agency in charge of directing money or check with others locally who have been successful in lobbying for dollars for their house projects.

Typically, we have seen a 2nd mortgage used to finance the house projects, with a straight interest rate a bit higher than a 1st mortgage, because it is in the 2nd position. If you are able to combine the equity with the first, be careful of the loan origination costs and make sure it is a good deal for you based on the terms given.

Best of luck to you,
Liz
  • September 02 2013
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