When a homeowner comes to Titus Contracting for us to renovate their home, it can be for any number of reasons.
A common reason to remodel a home is to create additional space or to modernize an out-of-date interior. However, whether it’s in St Paul, Eden Prairie or someone wants a full Minneapolis home renovation can have a significant impact on a home’s value now and in the future.
As with any real estate-related cost, there are fees associated, and depending on what you would like to do with your home, costs can vary. We’re sure, as a homeowner, you’re well aware of most of the financing options available to you, but you may not know all of them. Here are ways homeowners commonly finance their home renovation projects:
Home Renovations Financing Options
* Bank Loans
You probably have an established history with the bank you have your mortgage through. If you’re looking to finance a home renovation project, most of the banks in the Minneapolis/St Paul metro offer a wide range of loan options for you to consider, like home equity loans, which often have the lowest interest rates.
* Lines of Credit
A line of credit is a mix between a credit card and a loan. A personal line of credit will usually have a higher interest rate than a loan, but the interest rates are usually less than those associated with credit cards. The repayment schedules are often more flexible than bank loans, so this may be the option if you’re unsure how much you can pay off each month.
* Mortgage Refinancing
With our Minneapolis/St Paul clients, we often see this as the usual choice for financing home renovation projects. The payments will be spread out over the mortgage duration, and the interest rates are usually very reasonable. Refinancing is usually what clients have chosen to finance large scale home renovations.
If you’re thinking about a home renovation project in the Minneapolis/St Paul metro, but are unsure as to the cost, let Titus Contracting help. Whether you are a Twin Cities homeowner seeking to know the cost of a second-story add-on or another type of home addition, we provide realistic remodeling cost estimates.