Remodeling your home can add substantial increases to your homes value, resulting in an increased amount of equity in your home. Assuming the upgrades and renovations were the type of home improvements that do in fact increase value, you may be in a better position to refinance and take cash out.
The first steps you should take are getting an accurate idea of what your home is worth, identifying your exact loan balance, and then seeing what your current loan-to-value ratio is. Then, you can prequalify for a cash out loan and see what terms you are offered. Assuming these are agreeable terms, you will then want to proceed with the loan.
Keep in mind that the maximum LTV offered is 85%, unless you are a veteran (which may qualify to cash out up to 100% of their home’s equity). So if after remodeling your new home’s appraised value is $300,000. If you qualify, you can take out up to 85% of $300,000 which is $255,000. If you currently owe $150,000 then you will be eligible to take out the difference of $255,000 and $150,000 which is $105,000.
If you would like to receive a free loan quote, we can help match you with a mortgage lender. The lender that we match you with will provide you with a free consultation, and the opportunity to get pre-approved for a mortgage refinance.