Mortgage rates are low, possibly lower than when your home was originally purchased.
By refinancing your existing mortgage, it is feasible that your payments will be lower than they are currently. Also, since
money is being invested directly back into your home, no equity is lost. This is also a viable alternative because the interest
on this loan is then tax-deductible. This is a sound financial choice.
We can provide you with contacts
at several mortgage companies and although we cannot endorse any one in particular, we have had success with all of them.
Don't forget to contact your current mortgage carrier, often they will offer the best value.
SECOND MORTGAGE
This is a popular alternative for many
homeowners. There are a couple of different ways to obtain a second mortgage. You can apply for the total amount you will
need for the construction or you can apply for an open-ended equity loan. With this loan you will pay interest only on the
amount you have borrowed to that point.
We can also provide you with contacts for this type of loan.
DEBT CONSOLIDATION LOAN
This loan
can consolidate other higher-interest debts such as credit cards and open lines of credit with the money needed for the basement
finish, for a new lower- interest loan. The monthly payment on the consolidation loan, including the money needed to finish
your basement, is generally equal to the combination of the individual debts.
This is a great selection
if you would like to consolidate at the same time you finish your basement, and are concerned with higher monthly payments.
RENTAL PROPERTY INCOME LOAN
Most importantly, do not forget that your basement is now an asset. Recent studies have shown that a one-bedroom
basement apartment will rent for between $1,000.00 and $1,200.00 per month. Even considering a loan of $40,000.00, with payments
of approximately $300.00-$400.00 a month, it is feasible that you will show a net profit of approximately $700.00-$800.00
per month beginning directly after the basement is finished. Many clients have renters lined up before the basement construction
is complete.
With no initial investment, this is a great way to increase your monthly income.
AS YOU CAN EASILY SEE, THERE ARE MANY FINANCIALLY
SOUND ALTERNATIVES IN ARRANGING FINANCING FOR THIS PROJECT.
REMEMBER, THIS IS MORE
THAN AN ADDITIONAL BEDROOM, OR GAME ROOM; THIS IS A MAJOR ASSET IN YOUR FINANCIAL FUTURE.
