These are times when selling a property at the appraised value has turned into a challenge, given the market saturation and somber financial panorama prevailing in Puerto Rico and the United States. Home improvements have become an ideal alternative for those who urgently need more space or who are simply tired of the constant fixings and breakdowns that begin to come up in homes with the passing of time.

What better way to build that extension or fix the breakdowns than using the house’s value as a guarantee for a loan? Using the house value as guarantee a home improvement program offers many advantages, not just because the property will look optimal, but also because it will increase in value, which is the final goal of anyone investing money on a house.

Remember to find out if those improvements you plan to carry out are considered when appraising the house. Generally speaking, improvements with an effect on the value go beyond the superficial, cosmetic aspect, as such. They are improvements that expand the living space of the house, (such as extra rooms) and those with a direct impact on the basic structure, such as water pipes and electrical systems. Remodeling bathrooms is another improvement that highly impacts the appraisal.

Additionally, the interest on home improvement plans can be deducted from your tax return, which significantly reduces interest expense. Consult an accountant or tax advisor regarding these tax benefits.

Another advantage of home improvement loans is that you can find more competitive interest rates. Given the loan is backed by the property, applicable rates are lower than other credit lines, such as personal loans.

And the payment term is flexible. Home improvement loans can give you the option of up to 30 years or more to repay (on some special products, subject to eligibility) to insure that monthly installments adjust to applicant’s budget.

In times of financial recession, perhaps the most relevant of all the attractive features home improvement loans have is the relief for your pocket. Modernizing and updating house systems will turn into maintenance and electricity savings, one of the biggest concerns nowadays because of the substantial increases in the power bill.

For example; if bedroom windows don’t shut completely due to deterioration, the air conditioner will leak out, thus consuming higher amounts of energy. The net result in savings like this is a more comfortable family budget, ready to face unforeseen situations that always come up, particularly when it comes to our dwelling.

For additional information on home improvement plans and refinancing alternatives, contact our expert financial planners at Oriental Group. They will examine your case and recommend those alternatives that best suit your reality. You can call them toll-free at 1-800-981-5554. You can also visit us at any of our 24 branches located throughout the Island.