Celebrating National DIY Day: How Home Improvement Can Impact Your Mortgage
National DIY Day, celebrated on April 2nd, is a great opportunity for homeowners to roll up their sleeves and take on home improvement projects. Whether you’re adding a fresh coat of paint, upgrading fixtures, or tackling larger renovations, DIY projects can enhance your home’s value and even impact your mortgage options. But before you pick up that hammer, it’s important to understand how home improvements can affect your home’s equity, loan options, and overall financial picture.
Boosting Home Equity with DIY Improvements
Home equity is the difference between your home’s market value and the remaining balance on your mortgage. When you improve your home, you can increase its value, which in turn boosts your equity. Higher equity can offer several financial benefits, such as the ability to refinance at better terms or access cash through a Cash-Out Refinance.
Popular DIY projects that can increase home value include:
• Painting – A fresh coat of paint can modernize your home and enhance your space.
• Landscaping – Simple upgrades like mulching, planting flowers, and maintaining a well-kept lawn can boost your home’s curb appeal.
• Kitchen and Bathroom Upgrades – Updating cabinet hardware, installing new faucets, or retiling floors can give these key areas a fresh look without breaking the bank.
• Energy-Efficient Improvements – Installing LED lighting, sealing windows, or adding insulation can make your home more energy-efficient and appealing to buyers.
Refinancing Options After Home Improvements
If your DIY projects significantly increase your home’s value, you may be eligible to refinance your mortgage. A higher home appraisal could qualify you for a lower interest rate or allow you to remove private mortgage insurance (PMI) if your equity exceeds 20% of the home’s value. Additionally, refinancing can provide access to funds for further home improvements through a cash-out refinance.
DIY Projects and Appraisals: What to Keep in Mind
If you plan to sell or refinance your home after making DIY improvements, an appraisal will determine your home’s new value. However, not all upgrades guarantee a dollar-for-dollar return on investment. While some projects add measurable value, others may only enhance aesthetic appeal without a significant impact on resale price.
For best results, focus on DIY projects that improve both functionality and visual appeal. Keep records of materials used, receipts, and before-and-after photos to demonstrate the work completed. If you’re unsure whether a project will impact your home’s value, consulting with a real estate professional or mortgage expert can provide clarity.
National DIY Day is more than just an excuse to get creative—it’s an opportunity to invest in your home and future financial stability. Whether you’re making small upgrades or tackling major renovations, DIY projects can boost your home’s value, increase equity, and improve your mortgage options.
If you’re considering refinancing, tapping into your home equity, or purchasing a fixer-upper, contact your Ellason Mortgage Group Loan Originator today to explore your best financing options!
