P.J. Harris with The Harris Group is one of those people. We have had many clients call her to investigate their financing options. After evaluating a customer’s needs, she will suggest the best loan option available whether it is with The Harris Group or not! They know their stuff there and they are not hesitant to tell potential clients that there is a better deal going on at X. Talk about customer service!

From the desk of P.J. Harris: FINDING FINANCING SOLUTIONS Remodeling your home? It’s always a good idea to explore your financing options too. The right lender can provide you with creative ways to help work your new home financing into your existing budget! 1. Staying a while? – This solution is for the customer that wants to take advantage of the lower rates, but plans on living in their home more than five years. They probably do not want to restructure their mortgage again in the future: REFINANCE If you have enough equity in the home, it can make a lot of sense to restructure your 1st mortgage to include the new improvement cost. This allows the most flexibility when accessing cash to improve, as you get the money all at one time. You don’t even need to increase your term as the rates on 10, 15, 20, 25 and 30 year loans are historic lows. The costs to refinance can be reduced through low and no cost options. 2. Not planning on staying more than 5 years or intend to pay off the remodel expense quickly? A low cost solution may be the best solution. EQUITY LINES/2nd MORTGAGE If you want to keep your 1st mortgage in place, a simple step might be an equity line or 2nd mortgage. Most of these loans can be obtained for free through local lenders. Rates are a little higher than a first mortgage, but they can allow you to access equity in your home easily. You can choose a variable rate or fixed rate on these loan(s). 3. There are some “special” financing programs available if you want to take the time to look… REHAB PROGRAMS Don’t forget there is community lending and Minnesota money available to qualified borrowers. One of the best resources is www.mhfa.state.mn.us for more information. 4. Is this a really big remodel? You may want to pay as you go… CONSTRUCTION TO PERMANENT FINANCING Many of the construction programs have improved! This means one closing eliminating the duplicate expenses associated with construction loans. Permanent financing can be virtually anything you like, from 5,7,10 year Adjustable rate mortgage(s) to fixed rate loan(s). If your remodel is large enough, this can be a very cost effective solution.

  

Another great resource is the CEE of Minnesota. Many communities in Minnesota have incentives for upgrading your home. Just type in the city you live in and see what is out there. These programs change from time to time so if you have any questions be sure and give them a call.