Are you renovating your home?
Measure twice, cut once, and spend plenty of time thinking through your renovation.
The stock market is sky high. InterestInterest is money charged for the use of borrowed funds. Usually expressed as an interest rate, it is the percentage of the total loan charged annually for the use of the funds. rates are low. You’re feeling secure financially. Must be time to renovate.
Before you plunge in, take stock of your finances. Figure out how much you have to spend and then set the budget accordingly. Make sure you know what your renovation dollars will bring back to you in home value appreciation. If you’re already got the most expensive home on the block, your plans could be a big waste of money.
Most folks finance their renovation. If you’re borrowing the cash, you can either refinance your loanA Loan is an amount of money that is lent to a borrower, who agrees to repay it plus interest. — a good choice since interest rates are so low — or get a home equityYour share of ownership in a company. Stockholders are often referred to as equity investors, because they invest in the equity of a company. loan. Home equity loans are better for small projects — ones that you can repay quickly. Refinancing is a better choice if you need a large amount and you’re planning to stay put for awhile.
Check out your builder’s reputation before you hire him. And, consider having a lawyer look over the documents before you sign.
Measure twice, cut once, and enjoy.
Published: Mar 17, 2003