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Remodeling & Improvements

You may use all or part of your loan for home improvements. There are no major restrictions on the type of improvements to be made, within the boundaries of local building codes. Depending on the extent of the project, and the specific loan program, you typically have the choice of doing the work yourself, or using a licensed contractor. An appraisal may or may not be required.
A home improvement loan is a fully amortized, fixed rate 2nd mortgage. Placed in 2nd position on the property title, there is no affect on the terms of the existing 1st mortgage. You may choose a term from 5 to 25 years. The minimum loan amount is $15,000 unless stated otherwise on the application.
There is no equity is required. A loan program is available whether your home has equity, or not. The maximum loan amount can go as high as 125% of the value of your home.

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Tax Benefits

The interest portion of your loan can be tax deductible, similar to the tax deduction for your first mortgage. You should be able to deduct the interest on a loan up to the full property value. Check with your accountant for details


         Use the chart below as a reference for your home remodeling improvements:


Percentage of your investment that can be gained at resale:


Remodeled Kitchen
A kitchen update can reward a seller with a sizable payback. Just remember though; splurging on fancy finishing materials or sophisticated equipment may cut into your profit. Keep it simple.


Revitalized Lawn and Garden
A verdant lawn and a modest but colorful flowerbed will entice potential buyers. The few hundred dollars invested may yield several thousands in profit.


Especially if it is energy efficient, such as a gas-powered model, a fireplace holds the promise of cozy family gatherings around the warmth of the hearth.


Second Bath
All it takes is a simple 5x9 foot extra bath to make mornings more civilized for most families. But don't count on a return on extras like a heat lamp or whirlpool tub.


Room Addition
For the most attractive return of your investment dollars later on, the added room should be today's popular family room or a third bedroom.


Remodeled Bath
A master bath is on many buyer's list, so invest here. If you own only one bath, install two sinks or a double vanity to handle the morning crowd.


Expanded Master Suite
To keep costs down, try to find extra space to create this wish list item by combining existing rooms and spaces. Heavy structural work entailed by adding square feet diminishes your return.


Outdoor living space is a desirable asset no matter where the locale. No maintenance decking material leaves lots more leisure time, too.


Exterior Paint
Sprucing up tired siding, trim, etc., can take years off the look of an older house.


Finished Attic
You can expect to recoup more of your investment if you make sure the renovation does not detract from the aesthetics of your home. It is especially attractive as an extra bedroom in a small house.


Finished Basement
This is a great way to gain added living space without building a costly addition. If the basement has an access door to the outdoors, the project becomes more valuable.


Heating Systems
Replace it only if your old system is dysfunctional. Depending upon a buyer's priorities, a new energy efficient furnace may or may not be a selling advantage.


New Windows and Doors
Buyers appreciate changes that improve the look of a house, so attractive new French doors, for example, may be a plus. Energy efficient units are an ecological boom, but may be a resale bust.


Don't go overboard to blend it into your home's architectural style. Its desirability increases if you live in a part of the country with a harsh climate.


Swimming Pool
Unless you live where the sun always shines, such as Southern California, this luxury item can detract from your resale profit.

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