SAVANNAH, GA, Dec 06, 2013—If you're currently looking to remodel your home but aren't sure how to finance it, you're in luck. There are many ways to finance a remodeling project, explains Connie Ray, President/Owner of Coldwell Banker Platinum Partners. If you have equity in your home, a good credit rating, and steady income, you can refinance your mortgage and borrow a percentage of the equity to cover remodeling costs.
“Refinancing is a good option if you can get a mortgage interest rate at least two percentage points below your current home loan rate,” says Ray.
Other options include a second mortgage, a home equity loan, or an unsecured loan. Less popular options: margin loans, which are taken against securities you own; and loans from retirement plans, life insurance policies and credit cards.
Remember that if you're hiring contractors for work, you need to be able to pay them. “If for any reason you can't, they can take out a mechanic's lien – a “hold” against your property that provides contractors and suppliers legal recourse to assure payment for services,” notes Ray.
The liens vary from state to state and allow for a cloud on the title of your property and foreclosure action. Also, if you paid the contractor, but he failed to pay the subcontractors and laborers – who do not have a contract with you – then the workers may file a mechanic's lien on your home.
“This could result in a double payment by you for the same job,” explains Ray. “You can protect yourself from unwarranted liens by selecting your contractor carefully and managing your construction project responsibly.
“Also, most construction lenders will specify a payment distribution process that involves the securing of lien waivers,” Ray continues. The remodeling contract should address this as well, assuring that the general contractor is responsible for all payments as well as any costs required to remedy lien disputes that may arise.
For more information on refinancing, please contact Coldwell Banker Platinum Partners at Connie.F.Ray@mycbpp.com, 912-352-1222, or Coldwell Banker Platinum Partners.
Coldwell Banker Platinum Partners, established in 1995, is a full-service real estate firm with more than 100 sales agents strategically dispersed among its office locations spanning from Beaufort, South Carolina, through the greater Savannah area to St. Simons Island, Georgia. The company was founded by Connie Farmer Ray, president and CEO of Coldwell Banker Platinum Partners. In addition to listing and selling residential real estate, Coldwell Banker Platinum Partners other divisions include commercial real estate, property management, relocation services, a real estate school, mortgage lending, and a publishing/media division. The companys corporate offices are located at 6349 Abercorn St., Savannah, Georgia. For more information visit their Web site at www.MyCbpp.com or call 800.505.8111.