Home remodel financing is usually a complicated process. It depends heavily on Federal interest rates, the housing market, and your credit score. However, property values and FICO aren’t the only obstacles modern homeowners face. Today’s economy can make loan approval a nightmare, even when you do everything right.
They don’t call it a “dream home” because it’s a figment of your imagination. Living a fulfilling life means achieving goals while adjusting to evolving economic conditions. Mortgage interest hikes are evident, but they don’t have to prevent you from making the most of your home.
What’s Happening at Home?
The United States housing market witnessed a historic APR jump in 2022. The average 30-year interest rate reached over 5% for the first time in over ten years. Homeowners and first-time home buyers feel the heat together, and some struggle to afford essential upgrades or updates.
Many banks offer to finance, but their terms aren’t always favorable, flexible, or financially savvy. Meanwhile, our current economy can make some consumers nervous about taking out a loan for remodeling. Here are some points of concern:
- Our country’s mortgage debt is hovering around $10.4 trillion.
- The average mortgage in the U.S. is about $1,300, not including taxes and insurance.
- About 31% of all mortgages are from first-time home buyers.
- Nearly 65% of the adult population in America owns a house.
Under those circumstances, paying for remodeling and renovations can seem out of the question. Who has the extra cash in their budget for unreasonable financing plans when things are unpredictable? More than half the country sits on property that’s becoming increasingly difficult to afford.
We see some repercussions of easy borrowing practices from the past few decades. The mortgage industry boom preceded the bust, and now refinancing homes is less desirable than it has been in years. Fortunately, the housing market isn’t yet in full melt-down mode. Tightened borrowing restrictions have helped protect the integrity of the industry.
Stricter criteria could be bad news for those needing home equity loans for remodeling projects. And borrowing against home equity is challenging if you already have a low rate. However, now is the perfect time to launch because the ROI will likely remain high as inflation causes prices to rise.
Home Remodel Financing Options for Handling the Upheaval
The future is uncertain, but you’ll always need a place to live. Modern upgrades can help save you money while improving your standard of living. Some are also better for the environment and more sustainable in the long run. But affording the work can bust a tight budget, and not all contractors play fair.
Cornerstone Remodeling has developed a solution for the temporary upheavals we’re all experiencing. The goal is to help clients remodel their homes without a significant cash purchase and at an affordable rate. It can help homeowners create a financial bubble to achieve costly goals.
From now until September 30th, Cornerstone opens the gates to unsecured financing options up to $100,000. Clients can elect to pay for a home remodel with one of the following budget-friendly programs:
- Up to 20-year terms with low monthly payments available.
- Loan amounts as low as $3,500.00 and as high as $100,000.00.
- Rates as low as 6.99% APR
- No pre-payment penalties on any of our loans
The paperless process is fast and efficient, giving homeowners more control over their wallets and schedules. Clients can also request a remote quote to start their projects without leaving the house. Then they typically receive responses within minutes of submitting their applications.
Cornerstone Remodeling flexible financing plans use an “as improved” appraised value, freeing up additional capital for substantial renovations. The programs feature competitive interest rates to HELOC and cash-out refinancing modalities. Their approach is ideal for large-scale projects that drastically improve property values and is a wise choice for homeowners seeking small-scale upgrades.
Finance Your Home Remodel with Cornerstone
We know how exciting it is to think about remodeling your home. You want to make it work for your family and support your lifestyle. However, the unpredictable financing industry can throw a wrench into your plans. Fortunately, Cornerstone found a way to make the most of the situation with simple payment options for savvy homeowners.
Discover the potential in your home. Then experience a streamlined process that won’t unhinge your finances, and get started before interest rates climb higher. Our staff can help you calculate costs, determine timelines, and design the home of your dreams. Contact our award-winning team to launch a remodel fit for our economy.