Home Renovation Loan Calculator

Renovation loans such as an FHA 203(k) or a Fannie Mae HomeStyle lend against what the house will be worth once the work is finished, which is what separates them from an ordinary second charge. Enter the current value, the mortgage still owed, the project cost and the value an appraiser puts on the work, and this returns the after-renovation value, the most a lender will owe against it, the loan the job actually needs once the contingency reserve is added, and whether it fits. A second action sets the equity the project creates against the interest paid by the time you expect to sell. The value the work adds is your figure, not a table of national resale averages.

Calculator Type

Renovation loans lend against the finished house, not the one standing today. This shows how much that is worth to you.

A 203(k) or HomeStyle loan pays this off and replaces it, so it is part of the new loan.
The contractor bids, including permits and design.
The appraiser's figure, not the project cost. Most renovations add less than they cost; a few add more. If you do not have an appraisal yet, put in what comparable finished houses nearby have sold for above unfinished ones.
Ninety to ninety five percent is common on HomeStyle and 203(k). Some renovation seconds go above a hundred percent of the current value, which is why this box allows it.
Renovation lenders hold one back and it is borrowed money whether or not it gets spent. Ten to fifteen percent is usual, more on an old house.
Widget

What the work adds, what it costs, and what the borrowing costs by the time you expect to sell.

The appraiser's figure for the finished house less what it is worth now.
Interest is only a cost for as long as you carry the debt. Most people move or refinance long before a thirty year term is up.
Widget
Related Tools
HELOC Calculator Cash-Out Refinance Calculator Home Renovation Cost Calculator Loan to Value Calculator