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A woman uses a calculator to decide if she should refinance or renovate her home.

Skyrocketing prices in the real estate market have left many prospective homebuyers stuck trying to find ways to afford the many expenses that wait down the road.

In the face of this housing price spike, there are some alternatives to buying a home you can explore to enhance your current living situation. In addition to refinancing your home, you can also consider renovating your home before selling. This blog from Landmark National Bank will explain how these strategies can lead to savings in the short term and relieve long-term financial stress.

Should I Refinance My Home?

Refinancing not only allows homeowners to lower their monthly mortgage payments but also provides an avenue to switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The stability and predictability offered by a fixed-rate mortgage can shield homeowners from future interest rate hikes, making long-term financial planning more set in stone. An often-quoted rule of thumb says that a good time to refinance is if mortgage rates are lower than your current rate by 1% or more. Use our refinance calculator to see if that makes sense for you.

Should I Renovate My Home Before Selling?

Another strategic financial move you can make in the current real estate landscape is investing in home renovations. Rather than succumbing to the competitive homebuying market, consider enhancing the value of your current property through targeted renovations. The right upgrades not only improve your quality of life but can also significantly boost your property’s market value.

Taking out a loan for home renovations can be a judicious financial decision. Interest rates for home improvement loans are often more favorable than those for traditional mortgages, making them a cost-effective way to increase your home’s value.

The Value of Saving

While refinancing and renovating offer tangible solutions for current homeowners, saving remains a realistic step anyone can take toward their dream home. Establishing a robust savings plan is key, and staying committed to it requires discipline, creativity, and resourcefulness.

Ways To Save Money for a Home

  • Automate savings. Set up automatic transfers to a dedicated savings account each month. This ensures consistency and helps individuals stay committed to their savings goals.
  • Expense evaluation. Scrutinize your monthly expenditures and identify non-essential items or services that can be eliminated or reduced. Redirect these funds toward your home savings fund.
  • Side income. Explore opportunities for generating additional income, such as freelancing or creating a side hustle. This extra cash can be specifically earmarked for your future home purchase.
  • Minimalism matters. Adopting a minimalist lifestyle can simplify your life and contribute significantly to your savings. Sell or donate things you no longer need, directing the proceeds toward your home fund.

Get Expert Financial Assistance From Landmark National Bank

Rising home prices require new buyers to take a strategic and multifaceted approach. Refinancing and home renovations offer practical alternatives for current homeowners to navigate the market, along with smart saving practices. Landmark National Bank is here to help you get through it all with comprehensive services ranging from savings accounts to home loans. We can assist you whether you’re a financial novice or a seasoned investor.

Contact Landmark National Bank or locate a bank branch near you today to start the process of effectively managing your money!

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