If you’ve owned
your home for a few years, chances are you’ve been building up some nice equity.
And with mortgage rates hovering around historic lows, this is a great time to
look at rolling the cost of your renovation into your mortgage. In fact, you
might find enough interest savings in your new mortgage to help knock down the
overall cost.
Let compare two
financing strategies: a Line of Credit or Reno & Roll, assuming current
mortgage is $150,000:
Line of Credit – finance
using a line of credit, which is an added expense to your current monthly mortgagepayment:
Monthly Payments
Renovation Cost LOC+ Mortgage* Total
$25,000 $ 500 $749 $1,249
$50,000 $1,000 $749 $1,749
$75,000 $1,500 $749 $2,249
Reno & Roll – roll the
cost of your renovation into your mortgage and have one easy and much lower
payment:
New
Renovation Cost
Mortgage Monthly Payment*
$25,000 $175,000 $ 874
$50,000 $200,000 $
999
$75,000 $225,000 $1,007
Now close your
eyes and imagine enjoying the renovation
you’re dreaming of at your house. And using your prepayment options,
imagine paying it off faster than you dreamed possible.
That’s a great
Reno & Roll. Give us a call, and we’ll build a little R&R just for you.
*Assumes 3.5%
5-year, 25 yr am. OAC, subject to
change. +2% monthly line of credit payment, monthly balance will vary depending
on payments and usage. For illustration
purposes only.
No comments:
Post a Comment