If you’ve been considering making some home improvements or DIY repairs to your home but don’t have a way to pay for them, a mortgage refinance may be your answer. A refinance home loan is a mortgage loan that is taken out to replace an existing one. A borrower will undergo refinancing when they want to renegotiate their payment terms, change their mortgage type, reduce the riskiness of their mortgage, and/or to cash in on their home’s equity.

So whatever home improvements you’re planning- whether making repairs to your roof, installing a new kitchen, or making landscaping repairs, it is important that you first have an outline of all improvements that you want to make to your home before starting the refinancing process. When creating your outline, an important factor

to consider is how long you plan on staying in your home. If you plan on moving within the next 3-5 years, it is generally recommended that you take on projects that will have the most benefits when it comes time to sell your home. For instance, something such as renovating your kitchen would be a great improvement and immediately increase the value of your home

Also, when creating your outline keep in mind the costs of not only the intended improvements but the cost of the refi itself. Many of the same costs and that are associated with first mortgages also apply when obtaining a refinance. Between closing costs, application fee, appraisal fee, origination fee, survey fee, etc., a typical refi will cost somewhere around 4-6% of your loan amount.