On October 3, 2019, the National Association of Realtors® released its 2019 Remodeling Impact Report, and the results show that homeowners have a significantly increased love for their homes after undergoing a home improvement project.
The report examined 20 different interior or exterior home modification projects done by surveyed Realtors® consumers. According to the survey, once a remodeling project is completed, 74% of owners have a greater desire to be in their home, 65% say they experience increased enjoyment, and 77% feel a major sense of accomplishment.
“Realtors® and homeowners alike recognize the value of taking on a major home remodeling project,” said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota, and broker at Edina Realty. “While these tasks can be time-consuming and costly, the projects are well worth the temporary inconveniences, as this report shows, and the final products ultimately reward us, with feelings of accomplishment, satisfaction, and higher home values.”
Calculations are based on what the NAR calls a “Joy Score” for each project. The more pleased a homeowner is with a given project, the higher the Joy Score, the highest score being a 10.
“The NAR report shows us that people often remodel for resale purposes, but it also reminds us that homeowners remodel, too, with the desire to make a home their own,” said Lawrence Yun, NAR chief economist.
According to Forbes, Americans spend over $400 billion annually on remodeling their homes. One way to finance a remodel is with a cash-out refinance. With a cash-out refinance, the interest rate is generally lower than other options, such as a home equity line of credit, and the interest you pay is tax-deductible.* The U.S. Department of Housing and Urban Development (HUD) recently cut the loan to value limit on Federal Housing Administration (FHA) cash-out refinances to 80% LTV, down from the old standard of 85%, but there are still banks that will provide loans above 80% LTV.
If you think you’d like to get increased joy out of living in your home, maybe the time is right for a home remodel using a cash-out refinance. Contact the experts at NASB at 855-465-0753, or click here for more information.
*This is not intended to and does not constitute legal advice or financial / investment / tax advice. North American Savings Bank does not make any guarantee or other promise as to the results obtained. The consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.