Lots of people would agree that the real state is the best long-term investment that one can have. Having a house that you can call your own is the one thing that many individuals, especially the millennial generations, are dreaming of. Thanks to government home assisting programs such as FHA Loans, one can now easily avail or purchase the home he or she is dreaming of with a downpayment as low as 3.5 percent. But there are also loans such as a conventional loan that comes with different perks and advantages over FHA loan.
However, when it comes to increasing the value of their house via home improvement, many fail to realize that this significant task can benefit them. People think that home improvement projects are just an added expense. But why should one need to do it anyway? And what are the benefits that it can offer?
Benefits of Increasing Home Value via Home Improvement
It Helps to Remove the Mortgage Insurance
If you are one among those who purchased the house using a Conventional loan and availed the lowest downpayment, the Texas Mortgage Lenders will require you to have private mortgage insurance (PMI). This will ensure that the lenders will get paid by any damages if you discontinue the loan. However, it will add additional expense on your monthly dues from 0.5 percent to 1 percent of the total amount loaned.
When doing home improvement projects to increase your home’s value, it will significantly decrease the loan-to-value ratio. As the value of your house increases, the loan becomes less risky to the lenders. Whenever you reached the loan to value ratio of 80 percent, you may cancel your private mortgage insurance (PMI). And this means you are going to pay less on your monthly dues.
It’s Good for a Long-term Investment
No one can ever tell that the home you had purchased will be your home till the end of your days. There might be some circumstances that come along the way where you need to move from another town or state permanently. Increasing your home value also means higher market value.
Where Should You Start Your Home Renovation to Increase Your Home’s Value?
Enhance the Architectural Detail
One of the easiest ways to add curb appeal is by changing your house front door and windows. Choose something eye-catchy, and that will surely make a good impression. Don’t forget your roofing since this is the most significant part of your house that is visible outside.
Update Your Flooring
As one enters a house, the first thing that will become noticeable is the house flooring. It is not necessary to replace all your tiles. To reduce the cost, you can select some part that needs replacement while you can do refinishing for the rest. One of the best floorings that can significantly increase the house value is by installing timber wood floorings.
Upgrade Your Lawn
Also, don’t forget to make some improvement on the outside part of your house, such as your lawn. Install a fire pit or a patio; these two alone can increase your homes value significantly.