FOLSOM, PA, Dec 04, 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 Lisa Pecora & Louise Marchetti, Louise Marchetti & Lisa Pecora Team of Visit Our Website. 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 Louise Marchetti.
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 Louise Marchetti.
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 Louise Marchetti. “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,” Louise Marchetti 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 Visit Our Website at firstname.lastname@example.org, 16105861300, or Visit Our Website.
There's No Place Like Home! Louise is a native and lifelong resident of Philadelphia, while Lisa is a lifelong resident of Delaware county. We know the area and can help you find your dream home, or sell your current home! Both are members of the National Association of REALTORS, PA Association of REALTORS and Suburban West REALTORS Association and REBAC. We have both taken courses and earned the ABR designation ~ Accredited Buyers Representative. Lisa has also completed the ePro designation and At Home With Diversity. We truly enjoy what we do and love the opportunity to help others make their dreams come true! The most important part of our business of course is YOU the customer/client. We work for you and will work hard to get you from where you are to where you want to be. When not working on real estate we both enjoy spending time with family, spending time at the shore and on the beach, watching the Phillies and reading.