How To Cover The Cost Of Property Additions In MA

Property additions are a common alternative to buying a bigger house. With renovations, you may customize and ensure it matches your personal requirements. How to cover the cost of property additions in MA is offered below.

Personal Loans

Personal loans are not the best option but certainly can be used to fund property additions. Plan to pay more interest on personal loans than other kinds of loans. Additionally, paid interest is not deductible for tax purposes. Many people use these loans as an interim solution. Once additions are completed, your home value will improve. This might empower you to then get a home equity line or pursue mortgage refinancing. That money can subsequently be used to pay off personal loans.

Mortgage Refinancing

Mortgage refinancing is a common way to pull out equity without maintaining multiple loans. Furthermore, you can spread your property addition expenses over more years and take advantage of fixed rates. The amount of money you may take out depends on the specific mortgage program and the current value of your home. A down side of this alternative is the closing expenses.

Home Equity Line

If you have reasonable equity in your home, get information on a home equity line. Typically, you may borrow up to 80 percent of the market value of your home. A Home equity line has appealing rates and low fees. Interest payments can be tax deductible (check with an accountant to learn more). The loan length may be only 10-20 years and applicable rates can be variable.

Renovation Loans

FNMA HomeStyle Mortgages or FHA 203K loans allow you to finance improvements into your home with a refinance.  Please see my other blog regarding these types of programs.

How To Cover The Cost Of Property Additions In MA

Speak with an experienced lending professional for information on these alternatives. Also, there may be special property addition loan programs for which you might qualify. Regardless of which one of the “how to to cover the cost of property additions in MA” above you use, remember that your ongoing monthly home expense will increase as a result. Prior to making a decision, understand what you can afford and what renovation is feasible with your budget.

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About Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.

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