More homeowners are opting to stay where they are rather than put their homes up for sale and move into newer properties. For that reason, many may be refinancing their mortgages to free up some extra cash to fund home remodels.
According to a recent report from BuildFax, the rate of home remodeling projects increased 11 percent in January. Experts expect this trend to continue for quite some time. The reason is many families are refusing to sell their homes for less than they bought them.
“Residential remodeling this winter is as strong as it has been in more than five years,” said BuildFax vice president of research and development Joe Emison. “We expect residential remodeling to continue to grow throughout 2012.”
Meanwhile, many builders prefer remodeling projects. Right now, they are much safer investments than building new homes. The cost of a remodel averages $10,000, while a new home costs $184,000.
As a result, recent data from the government indicated that new home builds fell 1.1 percent in February. Many experts agree that this decline in new homes with a rise in remodeling is a trend that could continue for much of 2012.
By staying up-to-date on a fluctuating housing market, you’ll be able to make informed decisions when it comes to refinancing your home loan or qualifying for a mortgage. Using a home mortgage rate calculator provided by Freedom Mortgage to determine your best course of action could keep some extra cash in your pockets every month.
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