A home is a sanctuary, a place of comfort, relaxation, and privacy. It’s the one place we can truly be our authentic selves. With all of these perks come many unique possibilities. A home is a vestibule of personal expression, style, and ceremony. It is anything we want it to be, created in our own image. Of course, such grandiose designs often come with a hefty price tag. Given the current economic stressors, it’s easy to see how homeowners feel a little stretched for cash.
Renovations and remodeling initiatives require sacrifice. It’s the age-old economic principle in effect, with choices to be made. Homeowners routinely choose between options, satisfying budgetary requirements at the expense of exigencies. The most pressing issues are addressed first; the rest are put on the back burner for later. Even with this budget-oriented approach in mind, careful planning and preparation are needed to undertake a dream home makeover.
How Homeowners Make Renovations Possible
Everyone’s financial predicament is a little different, but oh-so-similar. Many of us have mortgages and make monthly payments to pay down our loans. Ideally, your mortgage repayment-to-income ratio should be no more than 30%, but a growing number of homeowners are being stretched thin. This means that paying the mortgage, utilities, insurance, and other necessities is eating up an increasing share of income nationwide. It’s a sign of the times.
Some homeowners are fortunate to have substantial earnings and higher levels of disposable income to undertake dream home makeovers. Ironically, high-income earners often find themselves in situations with high expenses. And that’s a part of human nature: we live our lifestyles according to our budget, and routinely push the envelope and live beyond our means. It’s nature’s way of leveling the playing field. Essentially, everyone needs to budget for their dream home makeover.
- Assuming you are a regular Joe or Jane first-time homebuyer, with an eye on a property that you wish to remodel, shop around. Mortgage lenders may standardize rates across the board, with slight variations in terms of percentages and payment terms. Often, your earnings (verifiable through tax returns) and credit scores determine the rates you are offered. Improve your credit score to lower your interest rate and increase your net disposable income before signing a mortgage agreement.
- Different categories of homebuyers are subject to other types of mortgages. Did you know that VA loan eligibility for veterans, service members, and eligible family members routinely offers competitive mortgage rates and terms (often at parity or below prevailing traditional mortgage rates) with no down payment required? The zero-down payment eliminates PMI requirements, putting more dollars in your pocket every month for the dream home makeover. Perhaps, the most significant monthly balance reduction comes from mortgage repayments, followed closely by auto loan and credit card repayments. It’s entirely possible to reduce your mortgage repayment amount through a qualified VA loan.
- The amount of interest you pay on your mortgage every month adds up over the life of the mortgage. A 30-year mortgage has substantial interest. It’s simply spread out over 30 years to make it appear less. Whereas a 10-year or 15-year mortgage may look like it has more interest upfront, but it’s not for a full 30-year term. The cost savings are substantial, and if you can afford it, it’s well worth your while to repay a mortgage and own your own home in a shorter timeframe. But if you need the cash reserves, you may find a longer-term mortgage more apropos.
Existing Mortgage Holders Routinely Remodel Their Homes
Many homeowners find themselves in a situation where a home renovation is necessary or desired. Of course, savings, investments, lines of credit, and low-cost options are possible. For example, a DIY home makeover is entirely possible at cut-rate prices. Simple renovations and remodeling projects can have a dramatic impact on the property’s aesthetic value.
For example, planting grass in a barren yard can spruce up the property and make it look fantastic. Painting or repainting the inside and/or outside of your home is an instant facelift with dramatic aesthetic appeal. If you fancy yourself as someone with a bit of artistic flair and creative talent, home renovations can be the most rewarding projects imaginable.
Beyond the basics, there are many affordable projects you can consider, including the following:
- Remove old carpets and replace them with vinyl, ceramic, porcelain, or wood flooring.
- New kitchen countertops, cabinets, faucets, and appliances.
- 65-inch 4K HDR QLED Internet TVs installed on wall-mounted brackets in communal areas – they are a real steal at cut-rate prices.
- Outside barbecue deck built into your lanai area with ample counter space, robust cabinets, and waterproof finishes.
- Remodeled bathrooms, with one-day shower and bath remodeling services. These are incredibly popular options for instant transformations at affordable prices.
- Change all lighting fixtures and fans for an ultra-modern, sleek, and sophisticated look.
As we go through these lists, it’s clear that options abound. There is no limit to the beautifications you can make in your dream home. It often boils down to choices and budgets. We can’t always have what we want, but we can make the best of what we can afford to have. Shop around for any home makeover you’re considering implementing. It’s pretty standard for homeowners to ask for three quotes from different contractors of equal quality. If you can do it yourself, you’ll save a bundle. Structure your budget so home remodeling is affordable and worthwhile. Now sit back, relax, and toast to your dream home makeover!
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