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Financing Tips for Your Home Remodeling Project in Denver
September 7, 2016
Whether your existing home is in some dire need for an upgrade, or you are purchasing a fixer upper, a home remodeling project in Denver can be a lot of work. The work will definitely pay off in the long run! Before contacting a local remodel company or deciding to take on some projects on your own, it is best to have a financial plan. This will help you determine how much you can spend, how much you need in reserve and then what your benefits will be.
- Estimated Remodel Costs: When it comes to remodeling your home, different areas have different costs. It also factors in the level of the project. For many, it may be a few appliances upgraded. For others, you may knock out walls and start from scratch. Each project will vary based on area and contractors. However, there are national averages. About Home’s article “Estimated Home Remodeling Costs†explains basement finishes can be up to $70,000, bathrooms can be up to $18,000, electrical upgrades can be up to $3,900, garages up to $14,000 and heating and cooling up to $4,500. Learn more about specific areas in the article. With costs adding up, when buying a fixer upper, this is a great opportunity to purchase a home at a low cost and put a loan or your own cash towards all of the various upgrades.
- Financing Ideas: When it comes to a financial plan for your remodel, you definitely want to look into smart loans. Avoid putting projects on credit cards that will have high interest rates. The goal of your remodel is to make great improvements that will pay themselves off. If you do not have the money in savings for your remodel, contact a mortgage broker. A great place to start is with your current home if you are currently paying it off. By working with a broker, they will review your credit situation and give you the amount you can borrow. From here, you can begin to plan your remodel project once you have the financing in line. Learn more in This Old House’s article “Here’s How to Finance Your Remodel.â€
- Padding and Other Finances: After hiring a remodeling company to handle your project, you can work with them to go over your allotted financing. Within your financing, you should have planned for emergencies. This is something your contractor can help you with too. Older homes are more prone to some costly surprise repairs, but they can definitely happen in newer homes too. On average, you should plan on 10 percent of your budget to go towards miscellaneous repairs. If you want to be completely safe, save up to 30 percent.