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Home remodels that pay off in many ways

Posted by Mehran Aram on Tue, Oct 8, 2019 @ 05:10 AM

Some homeowners invest in a renovation of their kitchen or bathroom because they hope that it will pay off when they sell their home, adding value and appeal. But in a new report from The National Association of Realtors, the benefits of a home remodeling project can pay homeowners back in ways that aren’t monetary at all.

NAR’s 2019 Remodeling Impact Report showed that in addition to potentially raising the resale value of a home, the job and sense of accomplishment for homeowners adds further incentive to taking on a remodeling project. In fact, 74 percent of owner-respondents to a survey state that they ultimately have a greater desire to be in their home after completing a project and 65 percent report feeling increased enjoyment in their home.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Deferring Social Security, National Association of Realtors, Mortgage rates, home remodel, Remodel

Kitchen remodels top homeowners wish list

Posted by Mehran Aram on Sat, Jun 15, 2019 @ 08:06 AM

With rising home values, homeowners are opting for cash-out refinances which allows for extra money to spruce up the home. And when selecting what type of renovation project to tackle, nothing ranks higher for homeowners than a kitchen remodel. Spending on kitchen transformations jumped a whopping 27 percent over the past year, reaching a median of $14,000 on upgrades. This is according to newly released data from Houzz & Home.

Americans spent over $150 billion on home renovations in 2018, not including work done by investors. This figure is expected to increase in the coming years as housing affordability struggles lead buyers to purchasing more-affordable fixer-uppers.

Upgrading kitchens give home values the biggest boost. The National Association of the Remodeling Industry states that such renovations garner an 85 percent return on investment.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: homeowners, Mortgage rates, Housing Affordability, home remodel, home remodeling, Kitchen Remodel, fixer upper, Remodel

Using equity to pay for home repairs

Posted by Mehran Aram on Wed, Nov 14, 2018 @ 21:11 PM

The real estate market continues to be a battlefield for some with rising rates and prices. As a result, more homeowners are choosing to fix up their current home rather than look for a new one. Making much needed repairs or adding upgrades are generally thought of as good investments. In a survey conducted by NerdWallet, more than 70 percent of homeowners said the best way to add value to their existing properties is through home improvement projects.

Data from the U.S. Census Bureau shows that Americans spent approximately $450 billion on their homes between 2015 and 2017.

Financing these projects is made a little easier by utilizing the equity built up in a home. Establishing a home equity line-of-credit or applying for a cash-out refinance can help fund a kitchen remodel, a leaky roof repair or any other array of projects that is on the homeowner to-do list.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.325 percent and the 5-year ARM is averaging 4.325 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: real estate, homeowners, Mortgage rates, home owners, HELOC, home remodel, home repair, cash out refinance