Recently in Home Refinancing Category

Seniors face aging issues with their houses and condos.  They must make decisions about what needs to be remodeled, and how to pay for it -- and for seniors that is usually more complicated than for people with full time jobs.  Reverse mortgages have become available as one tool.  But local and state programs also make loans available through affordable housing programs to help seniors remodel for energy efficiency, weatherization and major repairs such as roofing, plumbing and window replacement.

According to the AARP, the lowest cost reverse mortgages are public loans.

The least expensive reverse mortgages are the ones offered by state or local governments. But these "public sector" loans generally can be used for only a specific purpose, like home repairs. Many are only available to persons with low to moderate incomes. But the low cost can make these loans very attractive.

Energy Efficiency and Weatherization

Remodeling projects or home maintenance projects of significant sizes, such as major plumbing upgrades, or energy efficient window replacement or a new roof, can warrant using equity in your home.   These major home renovations can improve the quality of life for a senior at the same time they reduce monthly energy bills and improve the value of the home. 

Deferred Payment Loans (DPLs)

Many local and some state government agencies offer "deferred payment loans" (DPLs) for repairing or improving your home. This type of reverse mortgage gives you a one-time, lump sum advance. No repayment is required for as long as you live in your home.

Property Tax Deferral (PTD)

Some state and local government agencies offer "property tax deferral" (PTD) loans. This type of public sector reverse mortgage generally provides annual loan advances that can be used only to pay your property taxes. No repayment is required for as long as you live in your home.

According to a 2007 AARP study, some type of PTD program is available in parts or all of the following states: Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, North Dakota, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.

AARP does not endorse any reverse mortgage lender or product -- so do your homework and ask a trusted financal advisor for help in analyzing your situation and the reverse mortgages available to you.

Read more at AARP about Low-Cost Public Loans

According to a recent Remodeling Activity Indicator conducted by the Harvard Joint Center for Housing Studies, homeowners spent $149.5 billion on remodeling during 2005, representing an increase of 4.3 percent over 2004 levels.

Most homeowners use some form of home improvement loan to finance large  home improvement projects, and they often find that figuring out how much money is needed for the remodeling or home improvement project, and how much they can reasonably borow can sometimes prove to be difficult.

Online resources can save time in researching what home improvement loans are available, from whom, and for what. There are many home loan calculators available on the internet. Resources such as HomeLoanCenter.com is one such websites that is easy to navigate with clear explanations of various options.

An online home improvement loan calculator helps homeowners try out different combinations of loan features and remodeling dreams to see what loan option best fits  their situation. In just a few minutes a homeowner can test how various options will translate in terms of repayment, the amount borrowed and potential tax savings available.

It's important for your peace of mind -- and monthly budget -- to be fully aware of all the costs, fees, terms and charges, as well as repayment schedule. involved in a home improvement loan.  

According to the National Consumer Law Center, home improvement scams can result in big problems for homeowners, so it is wise to be careful, check out resources carefully and deal with reputable financial institutions and vendors when it comes to choosing home improvement financing options.

Take the time to check out not only your design...but the people you will be working with.

For more information about online home improvement loan calculators check American Loan Search at http://www.americanloansearch.com/ or HomeLoanCenter.com.

Home improvements for a home that you just purchased -- new, old or in between -- are often required before a bank will close on a home loan.  However, it's also possible that additional problem crop up...and that there are less necessary, but highly desired improvements you will want to make upon moving into your newly purchased home.

HUD (US Housing and Urban Development) makes loans available through the HUD 203(k) program to help buyers purchase or refinance a property plus include in the loan the cost of making repairs and improvements.  The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide. 

The downpayment on this type of home improvement loan is approximately 3% of the acquisition and repair costs of the property.

The HUD 203(k) home improvement loan goes through these steps:

1. A potential homebuyer executes a sales contract after doing a feasibility analysis of the property with their real estate agent. The contract should state that the buyer is seeking a 203(k) loan and that the contract is contingent on the home improvement loan based on additional required repairs by the FHA or lender.

2. The homeowner selects an FHA-approved 203(k) lender and prepares a detailed proposal showing hte scope of work and a detailed cost estimate on each repair or improvement.

3.  An appraisal is performed to determine the value of the property after renovation.

4. If the home improvement loan is closed, it will cover the purchase or refinance cost of the property, the remodeling costs and the allowable closing costs.  The home improvement loan will also include a contingency reserve of 10% to 20% of the total remodeling cost to cover any extra work needed.

5. At closing, the seller is paid and the remaining funds are put into escrow to pay for the repairs and home improvements during the rehabilitation project.

6. Mortgage payments and remodeling begin after the loan closes.  Up to six mortgage payments can be put into the cost of rehabilitation if the property will not be occupeid during construction.  Some restrictions apply.

7. Escrow funds are released to the contractor during construction through draw requests for completed work. Restrictions apply.

For a list of lenders who offer the 203(k) Rehabilitation Program, see the 203(k) Lenders List.

Before you undertake a home improvement loan, it is helpful to visit with other people -- friends, relatives or classmates in a home improvement class -- about the ins and outs of caring for a home, selecting a good contractor, and monitoring the work being done on the property.  Helpful advice and tips can be shared that cover your particular weather patterns and the kind of insulation or moisture control improvements that will make your home safe and snug for you and your family. 

Housing is the largest investment a family usually makes in their entire lifetime, and it pays to take your time, do your research, and select your home improvement loan and remodeling contractor carefully.