It’s no secret that we’ve all been spending more time at home lately. So it’s not surprising that the majority of Americans have already renovated their homes to reconfigure their working, learning, and living spaces. That trend is likely to continue.
In fact, 61% of American homeowners have taken on home improvement projects since March 1, 2020, according to NerdWallet’s 2020 Home Improvement Report
Data from the 2021 U.S. Houzz & Home Study
is slightly different, but it shows similar trends. Here’s what went on in the homes of 70,000 people who participated in the research:
- 53% of surveyed homeowners renovated their home.
- 55% of homeowners updated their home’s décor.
- 47% of those surveyed completed repair projects.
- The median increase in spending from the previous year was $2,000, jumping to $15,000 per home.
- Kitchens and bathrooms remain popular for upgrades.
- On average, homeowners are renovating three rooms at a time.
Funding your vision
In that same report, Houzz also found that a majority of survey participants (56%) plan to renovate their home in the coming year. If you’re one of those ambitious homeowners, there are several different ways to cover the costs of your renovation or home décor makeover:
- Cash from savings or a tax refund.
- Credit cards. However, this is a costly way to pay for major projects — and it can have a negative effect on your credit score.
- Refinancing your home, which we’ll explain more below.
The perks of refinancing
When considering a renovation, there are multiple benefits to choosing a refinance option to pay for the project:*
- The interest rate is lower than many interest-bearing credit cards.
- A potentially lower interest rate than you’re currently paying for your mortgage.
- You may be able to shorten the term of your mortgage, reducing the amount of interest you’ll pay over the loan’s lifetime.
- Since the housing market is so tight and competitive right now, a renovation could be a much more viable option than buying a new home.
- Buyer-friendly renovations can add value to your home when you’re ready to sell, increasing the future asking price.
What are you waiting for? Whether you’re dreaming about a sleek new kitchen, updated landscaping, or a tricked-out home gym, we can help you make it a reality! Give us a call or learn more about refinancing here
*This article provides general insights into renovations and mortgage refinancing. Results may vary based on where you live, what projects you undertake, the quality of the work, and the ever-evolving real estate market. Please consult a tax professional regarding any potential tax benefits.
Dec 28, 2021