The decision to refinance or remodel your home is personal and unique to each family. In the years that I was a homeowner, we did both refinance and remodel. It was the beginning of the 21st century, times were good and money was to be spent with abandon. Times have changed. But the pitchman on the radio is still singing the sirens song “if you are going to be in your home for less than five years, take advantage of an adjustable rate mortgage in the low three to four percentage range to adjust after five years.” Personally, unless you have a job in an incredibly stable industry, I would be extremely cautious about refinancing into an adjustable rate mortgage or even a fixed mortgage. As no one knows what is going to happen tomorrow.
Even thinking of remodeling your current home, as a life coach, I would be asking a client thinking of remodeling some tough questions they may not have thought of. Depending on the scope of the project remodeling takes a lot of time, energy and commitment. Is now the right time to take on such a project? Will it substantially upset the family’s routine? Is the entire family onboard? How long is the remodel expected to take? Tearing out a kitchen or bathroom is on a whole other level than adding color to a living room.
It is possible to use projects and busyness as a distraction to keep from facing the real issue. With the assistance of a life coach, we would explore the energy behind such big decisions and once some of the layers are peeled back the true answer emerges. If the true answer is it is right to remodel move forward with the project, if the answer comes back that it is a distraction to a larger problem stop and address the real problem saving countless energy, time and money.
Several items to keep in mind about refinancing the lenders will be looking for a stable work record along with documentation and a superb credit history.
If you discover a remodel is not in the cards right now, the quickest and least expensive way to brighten your home is to give it a good going through getting rid of everything you no longer need, like or want. It is amazing what cleaning the crap out of our homes and lives will do for our spirit.