• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Eagle Trust Insurance

Massachusetts Auto, Home, Business, and Life Insurance Company

Header Right

Customer Login|Sign-up
617-625-8400
  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Life Insurance Quote
    • Other
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Life Insurance Quote
    • Other
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog

How To Finance Home Renovations In MA

construction6Home renovations are a popular alternative to purchasing a bigger house. The great thing about renovating is your ability to customize the space and ensure that it fits your personal preferences. Knowing how to finance home renovations in MA are useful. Here are some common methods.

Home Equity Line Of Credit

If you have a lot of equity in your home, look into a home equity line of credit. Many lenders will loan up to 80 percent of the market value of your home. A Home equity line of credit has appealing interest rates and little to no closing costs. Interest paid may be tax deductible (check with your accountant to confirm). Note that the loan term is normally only 10-20 years and applicable rates could be variable.

Unsecured Loans

Unsecured loans are not a perfect solution but are certainly an option. Interest rates are traditionally higher on unsecured loans than other financing options. Additionally, amounts paid for interest are not tax deductible. Many people use it as a temporary solution. When renovations are completed, your property value will improve. This might empower you to then obtain a home equity line of credit or pursue refinancing the existing loan. That money may then be used to pay off the original unsecured loans.

Home Loan Refinancing

Refinancing involves getting a new mortgage at a higher amount that will cover paying off the existing loan plus paying for home renovations. This allows you to have just one loan moving forward. You can obtain a loan with a fixed rate and essentially spread your renovation costs over the life of your loan (i.e. 30 years). The amount for which you can refinance depends on your existing mortgage balance and the current market value of your home. Also keep in mind that there are closing costs involved with refinancing.

How To Finance Home Renovations In MA

Speak with your local lender for a pre-approval on one or more of these options. Additionally, there may be special home renovation programs available. Regardless of which financing solution you choose, remember that your future monthly home expense will be greater as a result. Before moving forward with a project, know what you can afford and what renovations can be achieved with that budget. The information on how to finance home renovations in MA in this blog are intended as a general overview.

Updating Your MA Homeowners Insurance Policy

After you have completed your renovations, contact your homeowners insurance company to review your policy. You may want to update the policy to reflect the changes made. For example, if you have added new living space or high end fixtures, you may need to increase the policy amount to cover the replacement value of those new features.

Previous Post: « Increased Threshold for Surchargeable Car Accidents | MA Auto Insurance Update
Next Post: Massachusetts Fall Home Repair Checklist »

Primary Sidebar

Easy Insurance Quote
Need a Fast Quote?
Click the Easy Quote button above for a short quote request form with a fast telephone response from our team members!

BLOG TOPICS

  • Community Involvement (3)
  • Insurance (127)
    • Auto Insurance (71)
    • Condo Insurance (5)
    • Home Insurance (39)
    • Life Insurance (6)
    • Renters Insurance (1)
    • Umbrella Insurance (3)
  • News (24)
    • Bills & Laws (2)
    • Real Estate (6)
  • Tips (209)
    • Car Buying (6)
    • Car Maintenance (5)
    • Credit (2)
    • Driving (20)
    • Holiday (5)
    • Home Buying (8)
    • Home Ownership (85)
    • Home Selling (1)
    • Registration (2)
    • Renting (3)
    • Safety (75)
    • Teen Drivers (1)
    • Travel (5)
    • Weather (22)
  • Uncategorized (6)

Search for…

Footer

Eagle Trust Insurance

125 CambridgePark Drive, Suite 301
Cambridge, MA 02140
Phone #: (617) 625-8400
Toll-free #: (800) 390-1446
Fax Number: (617) 625-8424

Office Hours:
Monday-Friday 9am-5pm
After-hours: Calls will be handled by our emergency call center

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter

Quicklinks

  • Make a Payment
  • Report a Claim
  • Manage Your Policy
  • Get a Quote
  • Contact Us

Insurance Products

  • Auto Insurance
  • Homeowners Insurance
  • Business Insurance
  • Life Insurance
  • Condo Insurance
  • Renters Insurance
MA
  • Log In
  • Not Enrolled? Learn More

Copyright © 2021 · Eagle Trust Insurance · Powered by Lanergy Solutions · Log in