Home Equity Loans Give You Room For Improvement

It’s a tough choice for a homeowner: Move into a new house, or improve the one you have. It seems so easy to call a realtor and arrange a showing. But your current home has something no new home can offer—equity.

Home equity is on the rise, providing homeowners a ready financing source to turn home sweet home into home sweet dream home. On average, homeowners spend 18 months planning home improvements. It’s time well spent, but some renovations pay off better than others. According to the “2015 Remodeling Impact Report” replacing your front door can transform the look and feel of your house and return 75% at resale. Similarly, you can expect a 67% return on a kitchen update. A home office remodel returns the low end under 50%

As you plan, look beyond your house to your neighborhood. Will renovations put you in a different league—and price range—than your neighbors? Also, keep in mind how long you’ll be in your house. If you’re going to fix it up and sell in six months, you’ll get all the pain of remodeling and not much gain. But if you plan to live in the house more than three years, it makes economic sense to remodel.

Call Hopewell Federal to help you calculate your equity and discuss your home equity loan options today.

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