Did you improve your garage? Garage doors do not always appear to be a game-changing remodel, but that much-needed upgrade just might give you more financial freedom. Here are the reasons you should consider refinancing your home after improving your garage.
Why Might My Garage Remodel Qualify Me for a Refinance?
Garage doors take up a sizable portion of your home’s exterior. When the outdated garage door that your home came with is replaced or improved, the entire exterior appears newer and more put-together. A home increases in value when it appears newer.
New or improved garage doors also enhance the functionality of a home. A home can be sold for more money when buyers can trust the structural integrity of it.
When the value of your home goes up while you own it, you gain equity. Equity is merely the positive difference between how much the house can be put on the market for and how much you originally paid for it.
If you gain equity off of a garage improvement, you can refinance your home in order to secure better deals on your mortgage payment. If this is the excuse you need to improve your garage, contact a reliable garage door repair company for an estimate.
Why am I Able to Refinance?
Refinancing when you have equity is not only in your best interest, but it is in the bank’s best interest as well. When you are refinancing, the new bank you are working with will buy out the rest of what you owe on your old mortgage. Banks and mortgage brokers want to buy out homes that have equity because they have the potential to make a profit in the the unfortunate event that a home goes into foreclosure.
Because of this, they are willing to offer better mortgage deals, which is a win for you.
Lower Interest Rates
Securing a lower interest rate is a huge incentive to refinance. Your new garage improvement means that you might be eligible to obtain an interest rate much lower than the one you are paying.
Now, how much of a decrease in an interest rate is worth the hassle? Nowadays, a decrease in just a few percentages can be enough of an incentive. For example, if you originally took out a thirty-year mortgage on a $100,000 home and are paying a nine percent interest on it, your monthly payment would be $804.62. Refinancing to a six percent interest rate would change that monthly payment to $599.55 for the same amount of time.
Reliable Interest Rates
Adjustable interest rates are pretty common, and often stressful. Refinancing can secure you a fixed rate. This will allow you to know exactly how much you will be paying every month, which gives you peace of mind and the ability to set a budget more effectively.
Shorter Mortgage Term
If you are able to secure a lower interest rate, you have the option of shortening the term of your mortgage (even by a half) without your monthly payment going through the roof.
How Do I Refinance My Home?
If you improved your garage and are interested in refinancing your home, start by hiring someone to get your home appraised. Next, Discuss the available options with various local banks and mortgage brokers and decide which option is the best for you.
This article was contributed on behalf of Houston Overhead Door, your number one choice when looking for affordable Houston garage door repair. Check out their website today and see how they can help you!