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ntruro

Refinance before starting renovation

ntruro
12 years ago

If you're planning renovation work and want to take advantage of the current low home mortgage rates, then re-finance before starting the work (or after the work is completed).

Recently, we applied to refinance our home mortgage. The appraisal came in at close to double the amount to be financed. However, because a bathroom renovation is still in-process, the bank was unable to complete processing the loan. After discussions with the loan officer, the bank agreed to complete the loan if we placed money in escrow. And we'll have to pay for a second appraisal after the renovation is completed to get the escrow money back.

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