Despite supply chain challenges and inflation, many homeowners are still interested in pursuing home improvement projects. Learn more about how to get your time and money’s worth if you’re looking to spruce up your home. In other news, mortgage rates have reversed their upward trend.
Increasing your home’s value
Before you pick a home improvement project, you’ll want to carefully consider your potential return on investment. Projects like kitchen remodeling can run up a hefty tab without guaranteeing that you’ll recoup your time and money, while simple steps like improving curb appeal can go a long way with lower upfront costs.
Mortgage rates reverse their upward trend
Mortgage rates have risen rapidly in the past few weeks, but they declined this week. Owing to concerns that the U.S. economy will contract, the 10-year Treasury rate has bounced around, which has significant impacts on the mortgage market. The retreat in rates is good news for borrowers, but many are still priced out altogether.
Obtaining a USDA loan
If you live in a rural area and meet criteria including income limits, you could be eligible for a zero-down-payment USDA loan with no limits on the amount you can borrow. Despite these perks, USDA loans have downsides including upfront and annual fees.
Using a home equity loan to buy a car
Typically, people will use an auto loan to buy a car, but a home equity loan is also an option for financing a new car. A home equity loan is riskier in that your home will be the collateral on the loan, but they also offer more favorable interest rates and loan terms compared to auto loans.
Unlocking your home equity during financial turmoil
Credit cards and personal loans are often unattractive options for individuals in a pinch, so you might consider tapping your home’s equity in the event of an emergency. Options like equity sharing can provide quick and low-requirement access to cash, but you should carefully weigh the pros and cons rather than viewing your home equity as a piggy bank.