Blog posted On December 19, 2019
Many homeowners are refinancing their mortgages with today’s low rates. Refinancing your mortgage can get you a lower mortgage rate, in some cases, and it can also be an opportunity to withdraw valuable home equity though a cash-out refinance. When you get a cash-out refinance, you originate a new mortgage loan equal to your existing balance plus the cash you wish to withdraw. Your new mortgage rate will also reflect today’s low rate environment plus any other changes since you financed your previous mortgage like an improved credit score or lower debt-to-income ratio.
One of the most popular uses for a cash-out refinance is home improvement projects. Reinvesting your home’s equity in a remodel or repair project could improve your quality of life and increase your home’s resale value. Many home repair and renovation projects start in the kitchen. Before you start your kitchen project, read this list of kitchen trends to avoid compiled by Apartment Therapy after interviewing real estate agents from across the country.
Granite Countertops – although many homes built or renovated in the early 2000s boast granite countertops, the trend is out. Real estate experts recommend going more neutral with your countertops choosing marble, wood, concrete, or white quartz or quartzite.
Open Shelving – this trend has spiked in popularity in recent years, but functionally it may not have the staying power. Do you really want to see stacks of mismatched coffee cups or a melee of spices and cans all the time?
Closed-Off Kitchens – while you should keep your cabinets closed, open floor plans are in, and have been for some time. Closing off your kitchen makes the kitchen itself and the entire home look smaller.
Dark Colors – lighter colors add space and can help create a more natural flow in your home. Darker paints and cabinetry really only work in a space that’s large enough and gets adequate natural light.
DIY Projects – we all get sucked into Pinterest and home renovation shows, but unless you’re a professional artisan, your do-it-yourself backsplash or hand-painted cabinets won’t increase the value of your home.
Renovating or upgrading your kitchen is an opportunity to add value to your home, when you invest appropriately. Work with a licensed contractor to ensure your project is cohesive and up to code. Consider replacing older appliances with new, energy efficient appliances. Functional upgrades typically get higher returns on investment than stylistic changes.
If you’re interested in refinancing your current mortgage, check out our mortgage calculators. Estimate your new monthly payment and find out how today’s low rates could work for you.
Sources: Apartment Therapy