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The advantages of remodeling home loans
You are looking a buying a new home for your family. You find one you like but it needs some updating and repairs but you don’t have the cash to do them. Your best bet is to investigate remodeling home loans. Many mortgage companies offer remodeling home loans which combine the home purchase loan with the renovating loan.
One of the biggest advantages of remodeling home loans is that the mortgage amount is based on the after repaired value of the home. If the cost of the home is $150,000 and repairs total $50,000, the mortgage will be based on a total home price of $200,000. This is perfect especially if you don’t have an extra $50,000 in cash available.
The one downside you need to be aware of with remodeling home loans is that because the $50,000 is included in the mortgage amount, you will pay interest on it for the term of the loan. The question you need to ask yourself is, “do I pay now with cash or later with interest”?
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