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Many homeowners, put off by high mortgage rates and home prices, chose to renovate their premises rather than move out, even if it meant spending more than they planned. home method said.

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The study polled 1,000 homeowners and found that 93% of them believe that repairs are worth the time, money, and any temporary discomfort caused.

The main reason homeowners chose to renovate was to enjoy their living spaces more, with over 75% saying they intended to stay in their homes after the project was completed. Approximately three-quarters (76%) of respondents also said they plan to undertake another home renovation, whether it be in their current home or a new one in the future.

The House Method study also found that 32% of homeowners planned to spend between $5,000 and $10,000 on their renovation project. However, almost 80% reported spending more than their original budget, and 68% went over $5,000 or more.

The most costly factors in the repair process were materials and delays.

“Even though homeowners face renovation challenges, they don’t stop at the renovation process,” said House Method.

If you’re considering home renovations, cash refinancing can help you finance the project. You can visit Credible to compare multiple mortgage lenders and find your personal interest rate without impacting your credit score.

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Homeowners see an increase in home equity

With high housing prices, homeowners could capitalize on the increased value of their assets to finance home renovations.

Latest version of CoreLogic Statement of equity showed that homeowners with mortgages increased their net worth by 27.8% year-on-year in the second quarter of 2022. This resulted in a collective gain of $3.6 trillion at an average of $60,200 per borrower.

Shmuel Schiovits, president and chief credit officer of Approved Funding, said homeowners can still look to capital built into their homes over the past few years as one of their home renovation financing options.

“Getting a home equity line of credit or a fixed-rate second mortgage can be a very affordable way to fund your renovation,” Schiowicz said. “Alternatively, construction loans are available that can be comparable to prevailing mortgage rates and programs.”

If you are interested in receiving cash refinancing, you can visit the Credible website to compare several mortgage lenders at once and choose the one that offers the best rate for you.

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Expert says renovations can help sellers stand out

Sellers in the market are currently struggling with less enthusiastic buyers, sidelined by high mortgage rates in excess of 6% and high home prices. High inflation also forces potential buyers to cut costs.

Roughly one in every 36 pending home sales failed in the last week of August, compared to about one in every 50 at the beginning of the year and one in every 45 at the end of August last year. Zillow.

Economists also expect that home prices will start to decline significantly as buyers escalate the breaks. CoreLogic predicted that house price growth would slow to 3.8% year-on-year by July 2023. Black Knight The data showed that average house price growth fell 0.77% in July from June, the biggest single-month decline since January 2011.

“House prices continued to rise over 14% annually, but in a market as highly volatile and rapidly changing as it is today, such hindsights can be misleading as they may mask more current, pressing realities.” Black Knight Data. & Analytics President Ben Graboske, said.

In this cooling housing market, renovations can help sellers stand out from potential buyers, according to one real estate expert.

“The first impression of your home is absolutely essential to making sure it shines in the refrigeration market,” Christine Morgan, HomeLight real estate agent in Costa Mesa, California. said. “Everything that came on the market during the pandemic was sold in the blink of an eye. Buyers now have more options and are very critical of what they offer.”

If you would like to learn more about raising capital from your home, contact Credible to speak with a home loan expert and get all your questions answered.

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