Renovating but not sure how to finance it?

Reno & Roll

Do you want to increase the comfort and enjoyment of your home because you’re planning to be there for the foreseeable future?  If your dream home is one renovation away, we’ve got a smart-money tip:  Reno & Roll.

If you’ve owned your home for a few years, chances are you’ve been building up some nice equity. And with mortgage rates hovering around historic lows, this is a great time to look at rolling the cost of your renovation into your mortgage. In fact, you might find enough interest savings in your new mortgage to help knock down the overall cost.

Let compare two financing strategies: a Line of Credit or Reno & Roll, assuming current mortgage is $150,000:

Line of Credit – finance using a line of credit, which is an added expense to your current monthly mortgage payment:

                                                  Monthly Payments

Renovation Cost         LOC+          Mortgage*           Total

$25,000                       $   500             $749                $1,249

$50,000                       $1,000             $749                $1,749

$75,000                       $1,500             $749                $2,249

 

Reno & Roll – roll the cost of your renovation into your mortgage and have one easy and much lower payment:

                                            New 

Renovation Cost             Mortgage                  Monthly Payment*

$25,000                            $175,000                            $   874

$50,000                            $200,000                            $  999

$75,000                           $225,000                             $1,007

 

Now close your eyes and imagine enjoying the renovation you’re dreaming of at your house. And using your prepayment options, imagine paying it off faster than you dreamed possible.

That’s a great Reno & Roll. Give us a call, and we’ll build a little R&R just for you.

 

 

*Assumes 3.5% 5-year, 25 yr am.  OAC, subject to change. +2% monthly line of credit payment, monthly balance will vary depending on payments and usage.  For illustration purposes only.