The Mortgage Report

JUNE 24, 2025

Home equity is how many people build wealth and, when tapped into, can provide borrowers with money for renovating and remodeling, investing, an emergency fund or even paying off other debt. These typically have lower closing costs but may come with slightly higher interest rates compared to cash-out refis.

Equity

The Living Room

MAY 2, 2025

Prospective buyers should account for closing costs, inspections, and the ongoing maintenance associated with homeownership. This step not only clarifies your budget but also positions you as a serious buyer in the eyes of sellers. Financial Preparation for Home Buying: Budgeting for a home extends beyond the down payment.

Earnest money deposit

Marco Santarelli

DECEMBER 21, 2024

This can be useful for major expenses like home renovations or paying off higher-interest debt, like credit cards. Can you afford the closing costs? Refinancing comes with closing costs. This will increase your monthly payment, but can save you significant money over the life of the loan.

Debt-to-income ratio

HomeLight

APRIL 9, 2025

It gives you access to the equity in your existing home so you can cover a down payment and closing costs on your new purchase without waiting for your old house to sell. Bridge loans tend to cost more than traditional mortgages, but they are designed to be fast and flexible, helping you move forward without as much financial stress.

Equity

Redfin

JUNE 23, 2025

Earnest money is a good-faith deposit held in escrow that can be applied to closing costs or the down payment. Property history: Information about past repairs, renovations, or insurance claims related to the property. This only applies in certain states. What happens in the due diligence period?

Due diligence

Redfin

FEBRUARY 24, 2025

Unexpected expenses: Unforeseen challenges, such as discovering hidden underground utilities, can lead to additional costs. Financing and closing costs: If you’re financing the land purchase or construction, anticipate paying 2% to 5% of the loan amount in closing costs. is $419,200.

Debt-to-income ratio

The Close

NOVEMBER 25, 2024

Long-term investors: They purchase homes about to go into foreclosure, make the necessary repairs, stabilize the property, and then finish the renovations to make the property eligible for a long-term loan. You’ll get a commitment letter and the closing date, and your lender will share the final details about your closing costs.

Hard money loan

AAOA

APRIL 14, 2025

To get the best appraisal: Choose properties in good condition Highlight recent improvements or renovations Provide comps of similar buildings that have sold recently Remember,different loan types have varying down payment requirements. Also, factor in renovation costs and emergency funds when deciding on your down payment size.

FHA loan

AAOA

MAY 22, 2025

Step 6: Close and Execute the Plan With financing locked in and due diligence complete, you move to closing day, b ut this is just the beginning. How Much Does It Cost to Buy an Apartment Complex? Renovation and CapEx Budget If your strategy involves improving the property youll need a CapEx budget.

Due diligence

AAOA

JUNE 19, 2025

Newer or recently renovated properties often cost more per unit. Variable cost, such as maintenance and utilities, can also influence the price per unit. Which formula would you apply to compute the average cost per unit? The formula for average cost per unit is Total Costs / Total Units.

Renovation

Redfin

JUNE 24, 2025

Understanding these documents ahead of time can make closing day feel more manageable and help you confidently finalize your home purchase. Closing disclosure A Closing Disclosure shows all the financial details of your mortgage and total closing costs.

Closing

Rochester Real Estate

NOVEMBER 5, 2015

Selling as is means no repairs or renovations are required, saving time and money. On the positive side, there is no need for expensive repairs or renovations, and cash buyers often cover the closing costs, saving you money in the long run. It can make a difference in landing a house or not.

As-is

Rochester Real Estate

NOVEMBER 5, 2015

This involves making a careful budget that includes potential costs like the down payment, closing costs, taxes, and possible renovation expenses. Following the down payment, additional costs are known as closing costs, usually between 2% and 5% of the purchase price.

Purchase and sale agreement

Redfin

JULY 31, 2025

State and local programs: Cities and states may offer down payment assistance, forgivable loans, or closing cost help. Fannie Mae’s HomePath Ready Buyer Program : This offers up to 3% in closing cost assistance when purchasing a HomePath property and completing a homeownership course.

Purchase and sale agreement

The Mortgage Report

JULY 9, 2025

Real-life use case: A homeowner might use a HELOC to cover ongoing costs of a home renovation — borrowing only as expenses come up. Cons: Closing costs and fees, possibly extending the loan term and total interest paid, requires credit approval. Verify your cash-out refinance eligibility.

Equity

HomeLight

APRIL 30, 2025

Learn more: How to Set Your Homes List Price: 5 Factors That Matter Most How to prepare your Alabama home to impress buyers When it comes to preparing your home for sale , you dont necessarily need a full renovation to make a strong impression. The biggest cost is usually the real estate agents commission.

Sales

AAOA

MARCH 24, 2025

They may face functional issues, have outdated designs, or require maintenance and renovations. Alternatively, if you purchase a multifamily property and undertake some value-added renovation and modernization, you could optimize your income and increase the propertys value. You can also refinish the property at a higher value.

Property Management

Redfin

APRIL 11, 2025

In high cost of living areas, homes that need TLC often sit at more approachable price points for first-time home buyers than turnkey homes. But with renovation costs on the rise, demand for move-in-ready homes is starting to outpace that of fixer-uppers. How much does a starter home cost?

Marketing

The Mortgage Report

JUNE 9, 2025

Steel prices have spiked somewhere between 15% and 25% since the tariffs went into effect, and the tariff rate on Canadian lumber has jumped to 34.5%, which is now directly contributing to a 17% increase in lumber costs year-over-year. These aren’t small fluctuations.

FHA 203k rehab loan

The Close

MARCH 11, 2025

Short-term FSBO Financing Options Short-term FSBO financing is ideal for investors who are navigating how to find for sale by owner homes and wish to acquire, renovate, and sell a property within a brief period. Rehab loans: Specifically designed to finance both the purchase and renovation of under-maintained properties.

Sales

Redfin

MARCH 4, 2025

Investors may see foreclosure purchases as an opportunity to renovate and resell for a profit, while homebuyers may find a house they wouldnt otherwise be able to afford. Homebuyers will need to complete a first-time homebuyer course and receive up to 3% in closing cost assistance for buying a foreclosed home.

Pre-approval

Redfin

JUNE 9, 2025

Recently renovated homes or those with upgraded kitchens, bathrooms, or major systems (like HVAC or a new roof) tend to appraise higher than homes needing significant repairs or updates. You can also ask for other concessions, such as closing cost credits, to help bridge the gap.

Purchase and sale agreement

Rochester Real Estate

NOVEMBER 5, 2015

Many of these first time home buyer programs and grants can help cover a large amount of the “closings costs” and/or allow them to finance a higher percentage of the loan (or all of the loan in some cases). This program allows 97% of the loan to be financed which includes the purchase price plus the cost of the renovations.

Closing costs

Marco Santarelli

JUNE 8, 2025

You'll encounter closing costs , which can include appraisal fees, title insurance, and lender fees. These costs typically range from 2% to 6% of the new loan amount. This is why carefully weighing the potential savings against these upfront costs is so important. How much will the refinancing closing costs be?

Mortgages

Redfin

JUNE 17, 2025

For example, if you’ve just added some value with new home features like stainless steel appliances, a renovated backyard, or granite countertops, your home could be worth more than it was previously appraised for. If that happens, you can offer concessions like paying closing costs or covering the cost of repairs.

Closing costs

AAOA

JULY 3, 2025

However, ongoing costs and tenant management can be challenging. Houses offer more control and long-term appreciation , especially due to land ownership and flexibility in renovations, but they require higher upfront investment and maintenance. So, if you make renovations or add amenities, you can get a write-off for that.

Property Management

Redfin

MARCH 4, 2025

Ideally, you would have enough equity to cover commissions, any liens, and closing costs. If you dont have enough equity to pay these costs, youll have to bring your own funds to pay them. If youre considering selling your home, its also a good idea to know how much equity you have.

Equity

The Close

APRIL 3, 2025

of purchase price and 100% of renovation cost RCN Capital is a private lender that offers a variety of loan programs for real estate investors. Here are some of the most important considerations: Interest rates and fees : One loan may offer a lower interest rate, but charge more in origination fees and closing costs.

Loans

The Mortgage Report

JULY 10, 2025

Start here Yes, you can you refinance a home equity loan or home equity line of credit (HELOC) without refinancing your mortgage A home equity loan or second mortgage lets you tap into your home’s equity for things like renovations, debt consolidation, or other major expenses. Lock in your rate and close the deal.

Equity

Norada Real Estate

JUNE 22, 2025

Lender Fees : Beyond interest rates, potential borrowers should watch out for origination fees, closing costs, and other lender fees that could inflate the overall cost of the mortgage. Each has unique benefits and requirements, catering to different borrower profiles.

Mortgages

HomeLight

MARCH 11, 2025

Outdated features or lack of upgrades that buyers want can make your home less competitive, especially when compared to newer or renovated homes in the same area. This free tool will factor in your homes sale price, as well as closing costs , agent commissions, and any outstanding mortgage balance.

Equity

AAOA

MARCH 10, 2025

To figure out your tax, start with your sale price minus your adjusted tax basis, which includes the original purchase price, acquisition costs, capital improvements, and depreciation. Remember, you can often deduct your closing costs (selling expenses) from your gain. This gives you your capital gain. Not so fast.

Investor

HomeLight

JULY 17, 2025

Co-ops are more common in cities like New York and often have stricter rules for purchasing, subletting, and renovations. Units often resemble condos or apartments in size and layout. Our free Agent Match platform analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Construction

Marco Santarelli

JULY 2, 2025

Refinancing allows homeowners to adjust their loan terms, either lowering their monthly payments or accessing equity for renovations or other expenses. However, it's essential to evaluate costs against potential savings carefully. Factor in any fees involved in the refinancing process, such as closing costs or origination fees.

Mortgages

Marco Santarelli

JUNE 23, 2025

Cash-Out Refinance: Access equity in your home for renovations, education, or other major expenses. Closing Costs: Refinancing comes with closing costs, which can include appraisal fees, title insurance, and origination fees, consider this cost as well.

Mortgages

Redfin

JUNE 17, 2025

Cost While it depends on the house and the market, buying an older home has the potential for a lower purchase price than buying or building a new one. Older homes may also offer the potential for a high return if restored or renovated, making them unique investment opportunities. Do new or old houses cost more?

Renovation

Norada Real Estate

JULY 2, 2025

Refinancing allows homeowners to adjust their loan terms, either lowering their monthly payments or accessing equity for renovations or other expenses. However, it's essential to evaluate costs against potential savings carefully. Factor in any fees involved in the refinancing process, such as closing costs or origination fees.

Mortgages