Need funds for renovation or remodeling?

Want to finance a home improvement or renovation project? Learn more about mortgage and home equity loan and line of credit options that may help you achieve your goal from Wells Fargo Home Mortgage, the nation’s leading originator of renovation financing.

What types of improvements can I make using the equity in my home?

Financing a renovation or remodel using your home equity may allow you to:

• Update your home’s features or enjoy more living space with a newly designed kitchen, expanding a home office, or a master-bedroom suite — while remaining in your own neighborhood.
• Make your home more functional by creating a separate living area for a family member or updating your bathrooms.
• Personalize your home to fit your lifestyle by adding enhancements such as an enclosed porch, deck, or swimming pool.
• Make your home more energy efficient with a new roof or replacement windows.

Home improvements have the potential of turning your house into a dream home. Whatever improvements you envision, Wells Fargo may be able to help you make your vision a realty.

How can I estimate my available home equity?

The amount you may be able to borrow is based on the available equity in your home, as well as other factors such as your credit history, loan characteristics, and property location.

To get a very general idea of your available equity for financing purposes, first make an estimate of your home’s current market value. You can find many resources on the internet to help you with your estimate. Or you may be able to request a comparative market analysis (CMA) from a real estate agent in your area.

• Next, multiply your market value by 0.80
• From that amount, subtract what you owe on the mortgage and any outstanding debt secured by the property

The result will give you an idea of the equity in your home that may be available for financing.

Example (for illustrative purposes only)

Your home’s current market value = $200,000

Total existing mortgage and any outstanding debt secured by your property = $120,000

$200,000 x .80 = $160,000

$160,000 — $120,000 = $40,000 estimated available equity

Other resources

• Use our home equity calculator to get an estimate of your available equity and explore your home equity financing options.
• A cash-out refinance can also be used to access your available equity. Keep in mind this option also refinances your existing mortgage.
• Customize and compare loan scenarios based on your specific needs using our interactive tool.

What should I know about planning a home improvement project?

When you’re planning your home improvement project, be sure to factor in the following steps:

Define the project

Create a budget

• Calculate how much you can contribute to the project.
• Determine how much you may need to borrow.

If you obtain financing for your home improvement, it is an additional expense beyond your current monthly mortgage. Be sure you can comfortably manage the payment.

Select a contractor

• The contractor with the lowest price may not always be the right person for the job. Balance long-term quality against cost.
• Select a contractor who has proven expertise in your type of project and the appropriate licenses. Always check references and the Better Business Bureau.
• If you use our Refinance & Renovate SM loan we’ll verify the contractor’s credentials. This detailed check includes supplier references, any contractor liens and bankruptcies, and confirms insurance and licensing. (This check is not included with a home equity loan or line of credit.)

Decide if it’s worth it

Will your home improvement or repair be worth it to you? Improvements that may add value include:

• Creating visible curb appeal such as exterior siding.
• Adding or improving functional living space such as a master bedroom suite, home office, or a remodeled kitchen.

Remember, a number of factors may determine whether you recover some or all of your expenses. These may include how long you remain in your home, the type of improvements you make, and the typical features of homes in your area.