Trying to calculate how much remodeling you can afford? Consider these four steps: Get the ballpark cost for the project, establish a spending limit, get quotes from contractors, and establish your priorities.
When it comes to home improvements, knowing what you want is the easy part. The tougher question is figuring out how much you can afford.
First, get a handle on how much your remodeling dreams will cost. In general, major upgrades, such as a bathroom remodel or a family-room addition, run $100 to $200 and more per square foot. Give Bluewing a call, and we will discuss your project. This allows us to share a general range of what you can expect on costs. In providing this guidance, we are able to lean on recent completed projects with similar scope of work.
Figure Out How Much You Have to Spend
Once you've zeroed in on a project and a budget range, the next question is whether you have the money. If you're paying cash, that's easy to answer. But if you're borrowing, you need to assess how much a bank will lend you and what that loan will add to your monthly expenses.
There are three basic types of loan options:
A cash-out refinance
A home equity loan
A home equity line of credit (HELOC)
For the vast majority of homeowners, the best way to borrow for a home improvement is a home equity line of credit. A HELOC is a loan that's secured by your home equity, which means that it qualifies for a lower rate than other loan types, and you can deduct the interest on your taxes.
Get a Quote
Once you are comfortable with a budget range and have a plan to pay for the project, we will provide a detailed estimate as well as set allowances for selections that keep your space on track financially. Give us a call today to take the next step!