Michael Calvagna

Refinancing costs typically range from 2% to 6% of the loan amount and include fees such as appraisal, title insurance, and closing costs. Factors like your loan type, location, and credit score can significantly impact these expenses. Our team can help to provide strategies that can help minimize costs.

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To determine how much home you can afford, you’ll want to assess your financial situation. This includes your income, expenses, and debt-to-income ratio, to ensure your mortgage fits comfortably within your budget. A general guideline is to spend no more than 28% of your gross monthly income on housing costs and 36% on total debt.

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A good credit score typically starts at 620 for conventional loans, while FHA and VA loans may accept scores as low as 500, though higher scores offer better terms. A strong credit score can help you secure lower interest rates, saving you significant money over the life of a home loan.

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A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity in their home. HELOCs function like a credit card, giving access to funds up to a set limit, which can be used for expenses like renovations or debt consolidation. You only pay interest on the amount you borrow, and the repayment terms typically include a draw period followed by a repayment period.

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To calculate your mortgage payments, start with your loan amount, interest rate, and loan term. Your payment will depend on the interest charged over time and the repayment schedule. You can use a monthly mortgage payment calculator or connect with us to learn more.

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1. Contact your CCM loan officer to find the right renovation loan.
2. Complete a loan application with required documentation.
3. Choose a reputable contractor and review your project in person.
4. Provide the contractor’s estimates and validation documents to verify their qualifications.
5. Complete underwriting for review of all your loan documents.
6. Close your loan and start your renovation.

• Cost factors: Costs vary widely based on project scope. You’ll need to understand your renovations and get contractor estimates.
• Budgeting tip: Add a percentage for unexpected costs, including changes later in the project.
• Loan options: CrossCountry Mortgage offers renovation loans from cosmetic upgrades to complete expansions.

Renovations may be tax-deductible or qualify for a tax credit, but only a professional tax advisor can guide you. Four categories of home renovations may qualify for tax breaks:

• Home office improvements
• Energy-efficient home improvements
• Improvements for medical care
• Rental property maintenance

While you could use a credit card or personal loan, a home loan will give you a better interest rate and financing to suit your project and your goals. CCM has several loans that combine your purchase or refinance with your renovation costs and provide disbursement management, so your contractor is paid correctly and on time.

The time for your renovation will depend on the project’s scope. While cosmetic work might take a week, a complete renovation could take a year or more. Loans have different time limits, too, so be sure to discuss this with your CCM loan officer. Experienced contractors and remodelers will tell you to allow extra time (within reason) to keep your stress level down and be prepared for delays.