Home remodeling on the rise

9/20/2013 9:27:53 AM

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Current property owners are increasing their home remodeling efforts, according to recent data released by BuildFax.

Figures from the construction data firm show that building permits for home improvements to existing residential properties increased during July, reaching a seasonally adjusted annual rate of 3.51 million. This marks a 2 percent increase from June, as well as a 16 percent increase from July 2012.

"The national upward trend in remodeling is unmistakable, with the notable exception of the Northeast, in which the major cities (Boston, New York) have seen substantially less residential remodeling this year than last year, even though overall permit volumes have remained close to last year's totals,"  said Joe Emison, chief technology officer at BuildFax.

These figures are in keeping with data from the National Association of Home Builders. The NAHB recently reported that builder confidence in the housing market remained strong in September, coming in at 58 on its Housing Market Index.

"While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates," said NAHB Chairman Rick Judson. "Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past."

With a home purchase being one of the largest investments a consumer can make, it's no surprise that many people are looking to increase the value of their homes even further. Upgrades to home areas like kitchens and bathrooms can not only make a home more comfortable, they can greatly increase a home's resale price.

Paying for remodeling with a cash-out refinance
While remodeling projects can definitely add value to a home, there's also the important matter of paying for renovations in the first place. Many homeowners turn to cash-out refinances as an affordable option for financing home remodeling.

A cash-out refinance loan allows a homeowner to access their property's equity in order to receive funds, and with rising home prices driving up equity across the country, more homeowners than ever are finding themselves with the ability to take out such a loan.

For eligible servicemembers with a VA home loan, a VA cash-out refinance can make the process even easier. In addition to using the funds for home remodeling, VA cash-out refinances can also be used for paying off debt, funding school tuition and other important matters.

Even better, a VA cash-out refinance loan can be used to refinance a non-VA home loan into a VA loan, giving eligible borrowers even more options.

Contact The Federal Savings Bank, a veteran owned bank, to explore mortgage refinancing options.