On one weekend, a Saturday in particular, I decided to attend a seminar on
home remodelling. I Usually prefer to call it
home renovation. It was basically for the elderly people.
Am not in the elderly bracket but I decided to attend anyway because I was feeling a bit lonely and wanted to be occupied. On looking around the room, I saw that most people were in my age group.
Think it is because they have to meet most of the cost for refinancing the renovation of the
home of their old ones.
This seminar turned out to be good to me and at the end I was convinced it was a good take.
In this seminar, it was revealed that research so far shows this:
It will probably cost anywhere from $100,000 to $150,000 to do a good renovation of a house for the elderly. This seems a staggering amount, until you consider that it would cost them from $3,000 to $5,000 per month if they were to rent a unit in a retirement facility in a location where they might not be as happy. Looking at it from that point of view, in four years or less, they would have spent the money anyway, and at least making
home improvements allows them to continue to live in the same location and keep their asset.
The biggest challenge many older adults face when renovating their
homes is how to pay for them. Many are on fixed incomes with few resources. Their property may have increased in value, but they are cash-poor.
During this seminar, a flyer was distributed that provided a telephone number for the city and county Elderly Affairs Division Rehabilitation Loan Program. Many cities have similar funds available as a means to assist individuals to stay in their own
homes, rather than move to more costly facilities.
I learnt that the loan program was available to a person or family requiring
home modifications, based on a health or safety need. The
home loan program required that an application be submitted with information about the number of persons living in the household and their combined annual income. This information was then used to determine the interest rate for the loan. For example, for combined incomes of less than $41,000 or so, the interest rate was 2 percent; for less than $52,000, 4 percent; and so on.
Another thing I learnt is that you can also have an option, which is that of a reverse mortgage. A reverse mortgage is a special type of
home loan that lets a
homeowner convert a portion of the equity in his or her own
home into cash. The equity built up over years of
home mortgage payments can be paid to the owner, but unlike traditional
home equity loans or second mortgages, no repayment is required until the borrower no longer uses the
home as the principal residence.
Reverse mortgages are available through different lenders, as well as HUD. There are some property restrictions, but single-family
homes, two-to-four-unit properties, condominium units, townhouses, and some manufactured
homes are eligible. Generally, the greater the value of the
home, the older the owners, the lower the interest rates, and the more one can borrow. This is good news right now, with interest rates so low, and it is an opportunity for your patients who have a higher annual income that disqualifies them from other programs. And if they live in an area of the country where land or
home values are traditionally higher, such as Hawaii or New York, it may be the best option available for refinancing.
Given the sheer amount you have to invest or borrow, here is a checklist before you decide on any renovation project.
Consider the following before you decide how to finance your
home improvement project:
-Talk to lenders about your options.
- Know that lenders are concerned about income, debts, credit history and property value.
-Consider a secured loan when you want to borrow more money, get a lower interest rate or reduce taxes.
-Refinance an existing loan if you have enough equity and if the rates are two points lower now than when you initially borrowed the money.
-Use a
home equity line of credit that is secured by your
home so youre your interest is tax deductible.
-Take out a
home equity loan to get fixed rates and payments.
-Consider a
homeowner loan that is secured by your property. Use a value added loan when the improvement you make will have a substantial impact on the market value of your
home.
-Do your research before using contractor financing.
Good Luck
Get more information on
home loans and
home remodelling by Lubowa.M.Planet. Visit
home Loans and mortagewebsite.
Get more information on
home loans and
home remodelling by Lubowa.M.Planet. Visit
http://www.softerdreams.org OR
http://www.softerdreams.org/how_To_shop_for_low_interest_only_mortgages.htm.
Reuters - Sales of new U.S. single-family homes fell to the slowest pace in 13 years while orders for durable goods tumbled unexpectedly last month, according to government data that added to signs the economy has stalled.
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