Stearns Lending Cash-out Refinance Enables Homeowners to Renovate and Repair Their Home

LEWISVILLE, Texas, Sept. 4, 2019 /PRNewswire-PRWeb/ -- The nation's economic recovery over the past five years has been especially kind to America's homeowners, especially those who have been in the same property for several years. Here's why: Homeowner equity has more than doubled in five years, increasing by $4.4 trillion from Q1 2013 to Q1 2018, according to the CoreLogic Borrower Equity Update report for the First Quarter 2018.

More recently, those with a mortgage were sitting on a total of $15.8 trillion in equity at the end of the first quarter of 2019, up from $6.1 trillion in the first quarter of 2009. This equates to the average equity per borrower increasing from approximately $75,000 to approximately $171,000 during a similar time period, according to the CoreLogic report "The Role of Housing in the Longest Economic Expansion."

"Today's refinance rates are presently much lower than those offered by the majority of credit cards and personal loans," said Jim Linnane, EVP Retail Lending President, Stearns Lending. "If a homeowner's home loan rate is above 4% and they are considering improvements to their home, a cash-out refinance from Stearns Lending – and the costs involved – may make a financially savvy choice."

Cash-out refinancing enables homeowners to tap into the equity in their homes. Equity is calculated by the principal balance on a mortgage, plus the appreciation found during a professional appraisal. Homeowners fortunate enough to live in areas with rapidly-rising property values are not always aware of how much equity is currently available to them.

In addition, a cash-out refinance often provides more funds than a traditional credit card, which makes them ideal for covering the higher costs of renovation projects. For example, the average cost of a new HVAC system is estimated to be between $6,000 to $12,000 for every 1,000 square feet of a home*. If a house is around 3,000 square feet, this means many credit cards limits would prevent the homeowner from charging the entire HVAC system's cost of $18,000 or more. Therefore, homeowners are well-advised to review their cash-out equity options before they decide how they'll finance major, high-cost home renovations, and repairs.

With 95.1% of homeowners in positive equity, most homeowners have more options to finance the home repairs they may have been delaying. These often provide an additional benefit – making the home more energy-efficient, which often results in lower utility bills after completion.

Homeowners can use a cash-out refinance from Stearns Lending to replace their roof, siding, windows, HVAC system, or all of these. Homeowners can also refinance to renovate their home to increase its value and comfort. Some popular renovations include open plan living, kitchen and bathroom remodel, adding a master suite or additional bedroom.

Stearns Lending, LLC is licensed to originate home loans in 49 U.S. states (excluding New York), including District of Columbia, and with over 90 branches across Alaska, Arizona, California, Georgia, Hawaii, Iowa, Idaho, Illinois, Minnesota, Missouri, North Carolina, New Hampshire, New Jersey, New Mexica, Nevada, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia, Washington and Wisconsin. Homeowners should contact Stearns.com to discuss their loan options.

SOURCE Stearns Lending, LLC