How to finance Nashville cabinets and add value to your home
One of the reasons that you should understand what adds value to your home is that cabinet renovation choices will affect your financing options. For example, if you decide to finance Nashville cabinets remodel with a refinanced mortgage or a home equity loan, you’re borrowing against your home’s value. If you haven’t increased the value of your home by as much as you’ve spent on a remodel, you could end up upside down on those loans for several years.
While some home remodeling projects are sexier than others, not all of them are going to add value to your home. When you look at your home’s outdated cabinets, these are some of the items that should take priority on your renovation list. Focus on the projects that are more likely to add value to your home.
The most popular way to finance Nashville cabinet’s renovation project is with a home equity loan or line of credit or with an FHA 203(k) loan. The most popular way to finance smaller projects is with cash: either pulling cash from savings or frog-leaping from one no-interest credit card offer to another.
But one secret—and exciting—type of affordable home remodeling loan doesn’t come through the Federal Government or private lenders. It comes from that agency normally associated with transit, property taxes, licensing, roads, and courts: your local county government.
Ask Your Contractor for a Loan to finance Nashville cabinets
Your home contractor may offer a loan for, say, 12 to 18 months. Typically this is done through a third-party lender. For example, Woodstone Cabinetry is offering “6 Month No Interest Financing” for kitchen remodeling. Customers can apply for a remodeling credit card and buy kitchen cabinets and pay them off over the next 6 months with no interest
You may be able to finance Nashville cabinets by arranging for an interest-free loan through your contractor as well. However, if you’re unable to pay off an interest-free loan before the term expires, you’ll probably owe interest backdated to the day you signed the agreement. In this arrangement, make sure you don’t lose the right to withhold payments if the contractor’s work isn’t done to your satisfaction, if that was a term of your contract.
Finance Nashville cabinets by Refinancing Your Mortgage
Another way to finance Atlanta Cabinets is by refinancing your mortgage. It’s always a good idea to review your current home loan every few years and find a more competitive deal on the market with possibly a new lender. By refinancing your mortgage with a lower interest rate your monthly repayments decrease, saving yourself thousands of dollars that can ultimately go straight towards the renovations. This could mean adding the RTA cabinets of your dreams! Yu can also seek further consultations from your Nashville Cabinet Company.
Consider a building and construction loan to finance Nashville cabinets
If you’ve decided to your Kitchen Cabinets in Nashville, then a building and construction loan (BICOE) could be the way to go. How do construction loans work? You receive your loan in increments, letting you pay invoices for the renovations as they come in.
Paying each bill as it comes in means you don’t pay interest on your building costs until work’s actually been done. This give you better cash flow.
Handy tip: Keep in mind that as you draw down more of your loan, the amount of interest you pay will start increasing. You’ll need to budget for that.
Be sure to compare shops when you decide to finance Nashville cabinets!
When it gets to a time that you need to finance Nashville cabinets, Rule #1 is always shop around! It’s not a bad idea to start with a quote from the bank that issued your first mortgage, but don’t stop there. Research current interest rates and terms, as well as closing costs and the other fees associated with different loans.
And don’t limit yourself to just one type of financing option. As long as you don’t take on too much debt, you can combine any of the borrowing methods above to finance Nashville cabinets.