WHY RENOVATE INSTEAD OF RELOCATE?

In today's market, many homeowners find themselves in a financial dilemma: they've secured historically competitive mortgage rates they don't want to give up, but their current home no longer meets their needs or desires. At the same time, home prices are elevated and inventory is low compared to historical averages. The interest rate “lock-in effect” is a large the perpetuator of low inventory because homeowners are resisting moving up or moving out because of the affordability of their current mortgage. 

Given these market conditions, we are much more regularly consulting with clients who are interested in using some of the equity their current home has built in order to add onto or renovate their current home instead of buying or building another one. The most common financial instrument to accomplish this is a HELOC

THE HELOC RENOVATION STRATEGY

A HELOC allows you to access the equity you've built in your home without disturbing your primary mortgage rate. Here's why this approach makes financial sense right now:

1. Preserve Your Primary Mortgage Rate

Why refinance your entire mortgage at today's higher rates when you can keep your existing rate and just borrow what you need for renovations?

2. Flexible Borrowing

Unlike a fixed loan, a HELOC allows you to draw funds as needed during your renovation project, so you only pay interest on what you actually use.

3. Potential Tax Benefits

Interest paid on home equity loans used for substantial home improvements may be tax-deductible. (Always consult your tax advisor for your specific situation.)

4. Build Additional Equity

Strategic renovations can increase your home's value, often times building you more equity than the cost of the improvements themselves.

POPULAR RENOVATION PROJECTS

Our clients are most often focusing on these value-adding projects:

• Kitchen renovations and expansions
• Bathroom renovations and expansions
• Home office additions
• Open concept conversions
• Home additions
• Energy efficiency improvements

READY TO LOVE YOUR HOME AGAIN?

Part of ensuring that any renovation project goes smoothly is creating a detailed and realistic budget to get started with. This is especially true with home equity and construction loans because the underwriting process usually includes an evaluation of the home’s value before and after its improvement. We have recently partnered with Figure Lending to offer a simpler HELOC approval and funding process and get started with your home project. Contact Southern Hills today to evaluate which renovations will add the most value to your home. 

Contact us today for a free consultation:

• Phone: (629) 567-1957
• Email: jake@buildsouthernhills.com
• Website: www.buildsouthernhills.com

Southern Hills Construction is not a financial institution and does not provide financial advice. Please consult with your lender and financial advisor about HELOC options and tax implications for your specific situation.