Improving Your Existing Home: Projects

Most home improvement projects fall into three general categories:

* Major renovations, which include add-ons, and bathroom and kitchen remodeling; installing new decks or patios; finishing basements or attics; or making modifications for handicapped access.
* Repair work, such as energy-efficiency improvements, termite damage repair, roof repairs and other health and safety repairs.
* Cosmetic changes, for example, interior and exterior painting, carpeting, molding, or floor refinishing.

Generally, the most popular remodeling projects involve redesigning or adding a new kitchen, bathroom, family room, home office, or other room addition. As a general guideline, kitchen and bathroom remodeling projects bring the highest percentage return on investment. These projects are popular because they strike at the heart of what homeowners and buyers want — comfortable, efficient space designed to reflect the way they live.

Minor repairs and most cosmetic changes may not require a home improvement loan, although they may be available if you need one. Larger repairs and most major renovations, on the other hand, can be expensive, particularly if they involve updating and reconfiguring structural and mechanical systems. Also, larger repair jobs may require the skills of a number of professionals (e.g., an architect, plumber, electrician, painter, etc.), which can be costly.

When undertaking a large home improvement project, a home improvement lender can offer assistance. With certain loans, your lender will oversee disbursements to the contractor, which helps ensure that the work proceeds smoothly, and typically requires periodic inspections of the contractor's work.

As you consider remodeling your home, think about your long-term goals for the house and how long you plan to live there. Also consider whether expanding a minor project will be more cost effective in the long run, rather than going with a quick fix.

For information and educational purposes only.