Home Improvement Loan – Remodeling Your Home

Usually you go for an improvement work in your home to increase its beauty or utility according to your requirement. You can have different budgets for these works depending upon the nature of improvement takes place there. Since, most of the individuals are usually found with no surpluses of funds, they have to worry at these moments. Home improvement loan can now be best way to sort out these expenses, as it can arrange any sum required at your home improvement.

You do not have bother more for qualifying at home improvement loan. You can avail this help putting the same home as security or collateral against it. With this, generally a mortgage or second mortgage is made on your home and you are granted with the required sum. The sum depends upon your requirement and here, you are enabled to avail even the total equity value of your home as your loan amount. However, when your requirements are somewhat little, generally a line of credit is provided against your home. A line of credit gives your freedom to withdraw the any denomination form the assigned credit limit with any frequency.

Since, this loan is secured against your home, the lent money has almost no risk and in return you get better term on the rate. The rate of interest can always be lower with this loan that too can be improved further with a good credit status and sound repaying capability. Besides this, you never have to take hassle for the repayment; you can repay the amount with longer repayment duration of 25 years.

You can find the lenders everywhere and even online to avail this loan. The online lenders can be contacted round the clock and can be asked for the loan through a simple online application form that is easily available with every lender’s site.

Now, home improvement loan niche a way to mould your home in your desired way even when required fund is absent with you. It helps you find the required sum regardless of your current financial condition. In sum, you only have to do some formalities and your home itself arranges sum for its improvement.

The Tax Implications of Home Improvements

In the United States, certain “qualified” home improvements may reduce your tax bite when it’s time to sell your house and some could allow you to take an immediate tax credit, but some of those same improvements could also raise your property tax bill by triggering a reassessment of your property’s value.

Fortunately, a property tax increase caused by a home improvement is typically outweighed by your increase in equity, higher resale value and possibly a reduced tax bite – not to mention your enjoyment of the improvements.

Capital Improvements

Capital improvements are those home improvements that may ultimately help reduce your taxes.

Qualifying improvements are improvements that increase your home’s overall value or prolong the life of the structure. That includes: insulation, new heating and/or cooling systems, a fence, a driveway, adding a garage or carport, adding a new room(s), additions, a swimming pool, landscaping, a porch or a deck, built-in appliances, a new roof, etc.

Repairs, maintenance and upkeep typically don’t qualify as a capital improvements. These include such things as: plastering, painting, wallpapering, replacing broken or cracked tiles, fixing minor leaks, patching your roof, repairing broken windows, and so on.

The moral of the story is; whenever possible, replace instead of repairing because capital improvements increase the homeowner’s cost basis in the residence and may reduce taxes.

(To get more information about what is considered a capital improvement see U.S. Internal Revenue Service Publication 523 “Selling Your Home” and the publication’s correction, “Notice 1221.”)

Your Cost Basis

The cost basis of your home is used in the calculation to figure your capital gains tax. It isn’t as simple as subtracting the sale price from the purchase price.

You first start with the original purchase price, add your closing costs, add any fees for title insurance and/or legal services, and the like. Loan acquisition costs cannot be included. Then add the cost of “qualified” home improvements.

Any insurance proceeds received for theft, storm damage, and other casualty losses would be subtracted, then any costs to rebuild or replace would be added back. You also must subtract any deferred gain from previously owned houses and subtract allowed depreciation for any portion of the property that was used and claimed for business purposes. The net result is your new or adjusted cost basis.

To determine the taxes, subtract the adjusted cost basis from the sales price, as well as selling costs (real estate commissions, legal fees, etc.).

Provided they are completed within 90 days of your sale and provided they were completed to make the home more saleable items otherwise considered repairs (such as wallpapering, painting, planting flowers, maintenance, etc.) can also be classified as selling costs. So from a tax perspective this is a good time to perform those repairs.

The difference between the adjusted cost basis and the sales price is your capital gain of which $250,000 ($500,000 for joint filers) is currently excluded from taxes.

Home Energy Efficiency Improvement Tax Credits

Consumers who purchase and install specific products in the home, such as windows that are energy-efficient, roofs, insulation, doors, and heating and cooling equipment can receive a tax credit of up to $500 beginning January 2006.

The legislation providing these credits, known as EPACT, also provides a credit equal to 30% of qualifying expenditures for the purchase of qualified photovoltaic property and for solar water heating property used exclusively for purposes other than heating swimming pools and hot tubs. The maximum credit is $2000.

Improvements must be installed in or on the taxpayer’s principal residence in the United States. Home improvement tax credits apply for improvements made between January 1, 2006 and December 31, 2007. Recently, a bill has been submitted to extend this program.

As always, check with your accountant to see how these regulations and any new changes in the code may affect you.

Home Builders and Remodelers – Industry Experts Answer ‘How to Deal with Tire-Kickers’, Part 1

I recently had the opportunity to interview 10 industry experts to get their advice on how to deal with ‘price-shoppers’ and ‘tire-kickers.’

Nothing can waste a builder or remodeler’s time more than spending it on a lead who may not be serious about going ahead with the project. Nothing can eat up a builder or remodeler’s profits more than get into a bidding war where quality falls victim to lowest price.

However “dealing” with this type of lead can mean many things…from eliminating the lead as quickly as possible, to qualifying the lead, to converting the lead from a ‘price-shopper’ to a ‘quality-shopper.’ (Can’t be done, you say?)

One remodeler I spoke with swears by his system of weeding out tire-kickers in less than ten minutes, over the phone, with five simple questions.

(For access to all 10 interviews, they’re freely available at http://www.SuccessfulHomeBuilders.com/interviews)

Weeding Out Tire-Kickers in Less Than 10-minutes…

Greg Schnarr has been in business for more than 20 years and his company, Schnarr Craftsmen, has won the local best renovation award three times out of the last four years. He knows a thing or two about which sales leads to follow earnestly…and which to let go.

“When we get a sales lead we have a form we fill in,” says Greg. “Some of the questions on the form can make the customer a little uncomfortable, but we find if they’re serious they’ll answer the questions honestly.”

The questions? Five important ones:

1) How long have they lived in their house?

2) How long have they been thinking about doing this project?

3) How much are they planning to spend?

4) When do they plan to start the work?

5) Are they getting any other bids, and how many?

What’s the Most Important Question of All?

According to Greg, the most important question is #3 — what’s your budget? “Our time is very valuable, and I consider their time to be valuable as well,” Greg states. “If they’re not willing to talk budget, we certainly wouldn’t go any further.”

Even though Greg found this an uncomfortable question to start asking his leads (and, sometimes, the most uncomfortable question for his leads to answer), it was necessary to qualify his leads better.

“It really is one that needs to be asked,” Greg affirms. “Before we started qualifying leads we really wasted a lot of time going out to see people who just had no clue of what things cost.” Now Greg eliminates about 50% of his leads with these questions. Where would you rather spend your time…10 minutes on the phone, or an hour (or more) with an unqualified lead?

However, Greg applies good ol’ business sense to his system. “If it’s a referral from a past customer, you might follow that lead a little harder than somebody who got your name from the Yellow Pages.”

How to Apply Greg’s System in Your Business…

Asking these questions is simple to implement in any builder or remodeler’s business. Equally important is tracking the results.

How many leads did you disqualify (and are those leads coming from one primary source)? Of the leads you “kept”, how many turned into good, profitable clients? Of the ones that were less than stellar, are there any common traits that’ll allow you to quickly identify them in the future?

The great thing about Greg’s system is it not only helps in dealing with ‘tire-kickers’, it becomes a continuous improvement tool highlighting where the profitable vs. the time-wasting leads are coming from!

Start asking the five questions Greg uses, so you can spend less time on dead-end leads, and more time on profitable clients!

Purpose of Home Improvement and Remodeling

Emulsion and paints on the walls are fading. Plumbing system is not working properly; leaky roofs and damp walls making the home a nest for molds and mildews; cracks on the exterior wall are prominent and the window sidings are broken. Yes, your home is looking ugly and sick; you need to give it a face lift.

Home improvement and home remodeling are done to renovate the exterior and interior of your home. At the same time, it helps you add some extra space some times. Planned remodeling can effectively increase living space. Adding a roof over an open place or constructing a door at a suitable position can allow you make full use of available area.

To keep your home in good shape you need to repair your home at a regular interval. All the homeowners go for home improvement at least once in a year or two. Home remodeling not only keeps your home in right condition, but makes it attractive and good-looking as well.

Apart from thorough home improvement and remodeling, you may need to repair small constructional problems through out the year. Leaks, small cracks, wiring defects etc. should be addressed as soon as they are detected. Otherwise the small problem can lead to serious damages later on.

Home improvement is a wide and extended process; it’s not all about repairing concrete walls and applying paints. Properly planned home improvement makes your home look esthetically correct. Apart from constructional retouch, residential remodeling adds a theme to your home.

Hence, while remodeling your home, you need to consider every facets of the building. Constructional defects, paints, windows, window sidings and shutters, furniture, garden and garden furniture, patio and deck, awnings and canopies, curtains and upholsteries, electrical wiring, plumbing works, functionalities and safety and security – all the areas should be thoroughly checked for any scope for improvement.

Make sure your home reflects your taste and culture. Choose the color schemes according to your likings. The room for the kids should be designed and decorated with pictures of cartoons, animals and birds painted on the walls. And in the patio or porch, decorate the ceiling with hanging plants.

Hundreds of thousands home remodeling tips are available to help homeowners make their homes look better. For decorative part of home improvement, you need to consult exterior and interior designers. For constructional works, you have to look for local home remodeling contractors [http://www.realreferences.com]

Residential contractors also help homeowners repair constructional and wiring defects. Since home improvement or remodeling is not a regular process and generally done once in years, you should be careful while choosing the home improvement contractors and designers. Consult local business directories or search the internet and hire reputed professionals to get best result.

Bad Credit Home Improvement Loan – Free Tips Inside

You can get the money that you need in order to put your home in order. Even when you decide to do your home renovations yourself, you are still likely to spend some amount of money. Take some time to research the things that you will have to do as well as the materials that you will need in order to carry out your renovating project.

Financial institutions, usually the one that granted you your mortgage, offer home improvement loans to help out people who wish to improve their homes. As these loans are unsecured, even those with bad credit can get a bad credit loan. These loans are actually treated as an extension of the homeowner’s original mortgage with the home’s equity value serving as the collateral. So, even when there is no separate collateral that is set us with a bad credit home improvement loan, the lender is actually secured against losses from defaults by the market value of the home. In this case, the home improvement is actually beneficial to the lender as well in that these improvements should increase the market value of the house in consideration.

You can get the information that you need on how to get a bad home improvement loan from online sources. There are varying specifications to these loans and it would be good find out all that you could before taking out these loans. If you have a bad credit rating, you would likely be slapped with higher interest rates. You have to make sure that you are still getting a good deal despite your bad credit rating. But, you should not expect to get the lowest possible interest rate. You have to be realistic as to the terms of your loan vis-a-vis your credit standing. If you want to find out how you can make your renovations possible by taking out a loan, research your home improvement loan options online.