Want to Renovate? Your Mortgage May Be Able to Help

A lot of people know that when you’re buying a new home, there are mortgage programs that allow you to borrow additional funds to complete renovations after you move in. I love that option, especially when you find a home that has potential but needs a little work to make it yours.

But did you know there may also be ways to finance renovations on a home you already own?

If you’ve been thinking about updating your kitchen, finishing your basement, renovating a bathroom, or tackling a larger home improvement project, you don’t necessarily have to rely on high-interest credit cards or other forms of debt to pay for it.

Depending on your mortgage, the equity you have in your home, and your overall financial situation, you may be able to roll renovation costs into your mortgage. This could potentially be done when your mortgage comes up for renewal or, in some situations, even in the middle of your current mortgage term.

Of course, refinancing or changing your mortgage mid-term can come with costs, including potential penalties, so it’s important to run the numbers first. Sometimes it makes sense to make a change now, while other times waiting until renewal could be the better option.

If you have a renovation sitting on your wish list, it’s worth exploring all of your financing options before reaching for the credit card. Your mortgage may be able to help you turn those renovation plans into reality.