One of the biggest advantages of homeownership is having the ability to transform your house to better suit your present and future. Big home improvements and room remodels are a couple of ways, but for today, let’s focus on the home addition. Executing a home addition is a great way to increase the value of your home, along with making your living space bigger and more suitable to your current living situation.
Of course, financing a home addition is no cheap endeavor. And depending on the addition you’re thinking about, it can get pretty expensive when you consider costs for labor, materials, and fees.
That’s why we created this fun, handy guide that gives you financing options to consider: What Are Some of the Ways to Fund a Home Addition?
You’ll see we put an interesting twist on this free download. In it, we personify four popular home additions and let them tell you how the homeowners funded them, along with the stories behind each addition.
For example, here’s a sneak peek of how a homeowner used a cash-out refi to finance the home addition.
A cash-out refi is one of the most popular ways to fund an addition on a home. If you’re unfamiliar with how it works, you basically replace your current mortgage with a new one that has a larger outstanding principal balance — and most importantly, you get the difference as a lump sum of cash. Learn more about the cash-out refinance process here.
It’s worth noting, too, that with current mortgage rates at their lowest levels in months, many homeowners are funding their home improvement projects with cash-out refinances.
However, a cash-out refi is just one example of how you can finance a home addition. To see what a new bathroom, sunroom, and back deck have to say about how they came to be, click below.