It’s exciting to think about all the ways you can make your home new again with some updates. Here are some things to consider and research before you do.
You’ll want to be sure that the renovations you’re dreaming up will add value to your home and not over improving the home, pricing you out of the market for your neighborhood. To help you determine this, you should get a few estimates from different contractors. We will appraise the value of your home as if the improvements were already completed. Then based on the appraised value, we will lend up to 95% of the home’s new Loan-to-Value.
Dollar Bank offers low, fixed and adjustable rates for rehab mortgages up to $1 million. How it works is that the rehab mortgage would pay off your existing mortgage, if you have one, and then finance the amount you want for the improvements. Similar to a construction mortgage, we’ll pay out the funds as the work is being completed. Additionally, your mortgage will automatically convert to a permanent mortgage when your term is up – so there’s only one closing.
Additional costs to consider when renovating would be if you would need to temporarily relocate to a hotel for major improvements. If you’re making exterior updates such as adding footage, making structural changes or something needs plumbing or electrical work, you’ll need to obtain a permit. Also, sometimes during renovations something unexpected is uncovered, so it would be a good idea to try and plan some extra funds for those projects.
Want to hear more about how Dollar Bank can help make financing the renovations of your dream home easy and affordable? Contact a mortgage expert, visit dollar.bank or stop by the nearest office.
About Dollar Bank
The ability to help others “do” has been the cornerstone of Dollar Bank since we opened our doors in 1855. It’s a belief in empowerment, that every customer and community we serve has a path to better possibilities before them. And that it’s our mission to help them get there.
Our commitment to helping you “do” is what makes us different, too. It’s the reason we listen so earnestly, work to truly understand your needs and consistently deliver the solutions that prioritize your wellbeing above all else.