🗞️ Sunday Special: ROI on home renos + how HELOCs can help with them

Learn hot tips on shopping HELOCs and what home renos are actually worth the investment ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( This week's mortgage rates [Rate chart] [Rate chart]( Source: US average mortgage rates from [FreddieMac]( --------------------------------------------------------------- Better Mortgage Interested in today's rates? [See Better Mortgage rates]( --------------------------------------------------------------- #FundFact 🙌 93% of homeowners felt they had a better quality of life after finishing their renovations.¹ Things to know Homeowners may look to HELOCs for home improvement projects Homeowners may look to HELOCs for home improvement projects Harvard’s Joint Center for Housing Studies forecasts that maintenance and improvement spending will grow to $485 billion for owner-occupied homes in 2023—a 2.6% increase from last year.² And it makes sense! It is estimated that by 2025, 36.2 million Americans will be working remotely, which is equivalent to about 22% of our workforce.³ Homeowners with low interest rate mortgages are staying put and remodeling what they own versus trading up until interest rates level out. As the purpose of a home continues to evolve, homeowners are inclined to invest in their space. Home renovations are one of the few investments that can help increase the value of your home. However, on average home renovations only provide a 70% ROI. Understanding the ROI of a home renovation can help homeowners optimize financial growth and increase their property’s value. Here are 5 home improvement projects with the best ROI in 2023⁴: 1. Heating, ventilation + AC system (HVAC) Average cost: $17,747 Average resale value: $18,366 2. Garage door replacement Average cost: $4,302 Average resale value: $4,418 3. House siding with stone veneer replacement Average cost: $10,925 Average resale value: $11,177 4. Entry door replacement (steel door) Average cost: $2,214 Average resale value:$2,235 5. Vinyl siding replacement Average cost: $16,348 Average resale value: $15,485 Why might a HELOC be a good option for funding home improvement projects? A home equity line of credit, or HELOC, is a type of secondary mortgage that allows homeowners to access the equity they’ve built in their homes as cash without selling their home or refinancing their mortgage. Homeowners interested in making upgrades to their homes may find a HELOC a helpful tool to fund big home projects because of their competitive rates. In fact, roughly two-thirds of borrowers in 2022 cited home improvements as a reason for applying for a HELOC.⁵ The average APR on a credit card was 20.68% and the average APR on a personal loan was 11.31% as of September 6, 2023 whereas the average HELOC rate was 9.17%.⁶ Hot tips on HELOCs! HELOCs are a unique financial product, so it’s a good idea to do some research to help you find a HELOC that's right for you and your financial needs while you shop. Here’s a list of items to keep in mind while you shop: - Teaser rates: Make sure that you understand the way interest rates will work during both the draw and repayment period and be aware of low introductory rates. Some lenders will offer a lower fixed-interest rate for the first year of the draw period, which will then turn into a variable interest rate and can lead to a big jump in your monthly payments. - Cancellation fees (Prepayment penalties): Prepayment penalties are fees that lenders charge when borrowers make early payments on their loan. Remember that a HELOC is secured by your home, so if you happen to need to sell your home for any reason, you want to make sure you won’t run into an issue with paying off your HELOC. - Plan ahead for your repayment period: As we mentioned above, your draw period allows you to make interest-only payments. However, once your repayment period begins, you’ll need to begin making payments towards your principal as well so it’s important that you factor this change in your budget. --------------------------------------------------------------- Better Mortgage Close on a Better HELOC in as little as 3 days⁷ [Apply today]( --------------------------------------------------------------- Press play Follow us on social to stay up to date with the latest mortgage tech, tips, and tools: Watch on [TikTok]( • [Instagram]( • [YouTube]( • [Facebook]( --------------------------------------------------------------- Better Mortgage Questions? Connect with a mortgage expert now [Apply today]( --------------------------------------------------------------- Quiz When should a borrower receive their initial closing disclosure? - On closing day - 1 day before closing day - 3 day before closing day - 1 week before closing day [Better] [Better] [social]( [social]( [social]( [social]( [social]( ¹Source: [Today's Homeowner]( ² Source: [Joint Center for Housing Studies - Harvard]( ³ Source: [Forbes]( ⁴ Source: [RenoFi]( ⁵ Source: [CNN]( ⁵ Source: [SFGate]( ⁶ Assumes borrowers are eligible for AVM to calculate their home value, their loan amount is less than $250,000, and all required documents are uploaded to their Better Mortgage online account within 24 hours of application. Closing timelines may vary. © 2023 Better Home & Finance Holding Company and/or its affiliates. Better is a family of companies. Better Mortgage Corporation provides home loans; Better Real Estate, LLC and Better Real Estate California Inc License # 02164055 provides real estate services; Better Cover, LLC sells insurance products; and Better Settlement Services provides title insurance services; Better Connect, LLC dba Better Attorney Match provides real estate attorney connection services; and Better Inspect, LLC provides home inspection services. All rights reserved. Home lending products offered by Better Mortgage Corporation. Better Mortgage Corporation is a direct lender. NMLS #330511. 3 World Trade Center, 175 Greenwich Street, 57th Floor, New York, NY 10007. Loans made or arranged pursuant to a California Finance Lenders Law License. Not available in all states. Equal Housing Lender [Equal Housing Lender]. [NMLS Consumer Access]( BETTER MORTGAGE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, PROMOTIONS AND BENEFITS AT ANY TIME WITHOUT NOTICE. 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