fixer-upper home improvement renovaiton loan mortgageMaking home improvements has almost become a national pasttime. With the recent slowdown in the housing market, some experts predict that even more Americans will choose to remain in their homes and fix them up, rather than try to sell and move up to a larger or newer home.

If you’re considering making more home improvements or renovations, it’s smart to consider not only the value of the improvements from a lifestyle standpoint, but also how well they will hold their financial value. Of course, almost any improvement will have “value” to you, the homeowner, as you enjoy more space, more light, etc. But you should also consider how the project will impact your home’s value when it comes time to sell.

While few renovations will fully pay for themeselves, some clearly hold their value better than others. To help homeowners determine what kind of improvements hold their value best, the National Association of Realtors and Remodeling magazine publish an annual “Cost vs. Value Report” each year.

Here are some recommendations based on the most recent report:

  1. Kitchens are at the heart of it - The kitchen is the heart of the house for most buyers and is usually a smart place to invest your home improvement dollars.
  2. Let the light shine in - By all means replace old, leaky windows - you’ll see the savings almost imediately on your utility bill. And window replacements are a pretty good investment.
  3. Have a party on the patio - Installing a deck may be the most cost-efficient way to add square footage to your house and, of all the outdoor home improvements except painting, it may be the most reliable value.
  4. A home theater and an in-law suite - With the booming popularity of big-scren TVs and surround sound systems, finished basements have become one of the most popular home improvements.
  5. Slap on the siding - Replacing old or worn-out siding is one of the highest-ranking home improvements in terms of return on investment.
  6. The bathroom: Back to the future - Is your master bathroom stuck in the 70’s or 80’s? Come on!! Get with the times, we all know the investment return on redoing a bathroom is over 100%

If you’re short on cash for home improvements, be sure to contact a trusted mortgage planner. There are a variety of different loan options to fit your needs, including home equity loans and lines of credita nd cash out refinancing.

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