Refinance with Rehabilitation

Do you need work done on your house but are not sure how best to finance it? Consider a Refinance/Rehabilitation Mortgage as an alternative to a second mortgage or home equity line of credit. A home equity loan or credit line might be a better choice than refinancing a low-interest rate first mortgage, but with super-low interest rates, this is not necessarily the case. A refinance/rehab mortgage is suitable for homeowners who: 1)  have owned their homes for 10 years or more and who have built up equity in them; 2) have existing mortgage rates that are higher than those offered on the new mortgages; 3) have relatively small balances on their existing first mortgages; and 4) cannot afford (or do not wish) to take out second mortgages to pay for their rehabilitation work. Eligible rehab items include housing code issues, energy conservation measures, kitchens or bathroom remodeling, exterior painting, a new roof, and many other improvements that one might wish to undertake.

 

 


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