An All-in-One Renovation Loan Can Save You Money Compared to a Purchase-Only Loan!
The Challenge: Buy the house you want, in a good location, at a price you can afford.
You’re looking for a great home in a great neighborhood, right? You’ve found that housing inventory is low, and home prices are usually high—maybe higher than you can afford. What to do?
The Solution: An all-in-one renovation loan gives you a triple win!
Use an all-in-one renovation loan to buy and renovate a fixer-upper in a desirable neighborhood. You get the house you want, the location, and the affordable price! An all-in-one renovation loan combines the purchase and renovation loans into just ONE LOAN, which means you’ll have just one application, one closing, and just one payment each month!
What about the interest rate and monthly payment?
You may have heard that a combined purchase-renovation loan typically has a higher interest rate than a purchase-only loan. The example in the table below shows that although the rate for a renovation loan is higher than for a purchase-only loan, the monthly principal-and-interest payment for a renovation loan can be lower!
In the example below, the rate is higher, but the total loan amount is $40,000 less than the purchase-only loan, and the monthly P&I payment is $105 less—a total savings of $37,800 over the 30-year loan term! In addition, the renovations done in this example may add about $40,000 equity to the home.
I'm buying a home that needs repairs or renovation, OR I'm making repairs and renovations on my current house.
- An All-in-One Renovation Loan Can Save You Money Compared to a Purchase-Only Loan!
- Seven Tips for Finding the Right Contractor for Your Home Improvements
- What is the Best Way to Finance Your Home Improvements?
- What Renovations Add the Best Value to Your Home
- Should I Stay or Should I Go?
- Home Renovation (Infographic)