The Advantages and Disadvantages of re-mortgaging your home, to spend on
home improvements.
Nearly everyone who owns a home has taken out a mortgage or two, whether
it’s to pay off the cost of their home, or to use their home’s equity to pay
off other bills and loans that may be owed. Our homes are very valuable and are
a great asset when you are in need of a large sum of cash for medical bills,
car repair or purchase, school tuition or just to help you get out of debt. But
what if your home itself needs some work? Is it smart to re-mortgage for home improvements?
The answer is yes. Home improvements will eventually, once completed,
add even more cash value and worth to your home. Allowing you to borrow an even
larger amount in the future if the need should arise or if you ever decide to
sell your home, you will be able to ask a much larger price by improving your
home’s overall vision and stability. If you need to make home improvements due
to your family needing more space, whether you have others moving in or a new
child on the way, it can be more affordable in the long run to add on to the
place you already own instead of packing up and moving to a larger home. And a
re-mortgage will keep your loan cost down over time as your loan payments are
spaced out through the full term of your current mortgage.
However, by adding on this extra loan to the mortgage you are already
paying, you will end up paying a substantial amount of interest in the long
run. By getting in contact with your mortgage adviser, you can get a good idea
on how much interest you will be paying over time, how much you should expect
to pay each billing cycle, how many extras, if any, years will be added onto
your payment schedule, and how much money you should ask for when you
re-mortgage. Your mortgage adviser will be able to factor in all your income,
current bills and the costs of all the home improvements you plan to make and
give you their input on what should be done and what shouldn't be done in order
to keep you and your family financially stable while you continue to pay on
your mortgage and this new loan.
For the best mortgage advice, get in
touch with the your mortgage adviser , who will be able to help you make those
much wanted home improvements you need with a re-mortgage. A good mortgage
adviser will ensure you do not have to struggle to keep up with your payments.