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Financing A Basement Remodel | Aspire Construction

How to Pay for a Basement Remodel

By Basements

If you’re a homeowner with an unfinished basement, you might be asking yourself, should I finish my basement? Whether you’re looking for more usable space in your house or increasing the value of your property, remodeling or refinishing your basement could be a great decision. Not only does it increase your usable square footage, but it can give you a high return on investment. In fact, finishing a basement can give you a return of up to 70 to 75% on your investment — or even more in Utah’s highly competitive housing market.

One common concern among homeowners looking to refinish their basement is the project’s cost. The cost to refinish a basement varies depending on several factors, including the basement’s square footage and the materials and finishes you choose. However, on average, homeowners across the country can expect to pay an average of about $18,395. Many homeowners who plan on finishing a basement will need to explore financing options before starting the project. With a wide range of financial tools and information, you’ll find the right financing option for you so you can get started on your basement remodel project.

 

6 Ways To Finance a Basement Remodel

When it comes to remodeling your basement, is it better to use a home equity loan, construction loan, or personal loan? Here are some standard financing options for those to choose to remodel their basement.

 

Home Equity Loan

One common way to finance a basement remodel is to use a home equity loan. This option might suit your purposes if you’ve got a substantial amount of equity built up in your property. A home equity loan (also known as a home equity line of credit, or HELOC) typically has lower interest rates than other types of loans, and the interest may be tax-deductible. One downside to using a home equity loan is that it isn’t an option for those who haven’t built up enough equity.

 

Line of credit

Another financing option for you might be a line of credit from the construction company. In some cases, the company or contractor helping with the basement project might offer financing for available homeowners. This line of credit usually has a variable interest rate, but some have an interest-free period. For these lines of credit, it’s wise to compare against the cost and terms of a home equity financing situation or personal loan. 

 

Cash-out refinance

A cash-out refinance gives you the option of refinancing an existing home loan to free up cash for basement refinishing or other home improvement projects. While this is an option for homeowners, it might not be the best option for several reasons. One reason why you might want to consider other options is that you might find yourself refinancing at a higher rate. You may pay closing costs on the entire amount, rather than what is needed just for renovation. 

 

Construction loan

A construction loan allows homeowners to borrow based on their home’s after renovation value. While this is an option for homeowners, it might not be the best choice. Construction loans are intended to be used to pay for ground-up construction but were once an option for basement refinishing because they let homeowners borrow based on the home’s future value. However, that is no longer the case. If you use a construction loan, you’ll need to refinance your existing mortgage, which may give you a higher interest rate. In addition, you may also end up paying closing costs on the loan and face a complex inspection before funds are released to you or the contractor. 

 

FHA 203k or Fannie Mae homestyle loan

FHA 203k or Fannie Mae homestyle loans are government-backed renovation mortgages designed to help homeowners finance the purchase of a property and any required renovation costs into a single loan. Both loan options allow you to borrow against the home’s renovation value but can come with complexities resulting in delays or other potential stresses. FHA 203k or Fannie Mae loans are good options for those with less than perfect credit scores which means that approval can be easier to achieve than other types of loans.

 

Personal loan or home improvement loan

Personal loans are another option for those interested in refinishing their basements. Many homeowners turn to personal loans when they do not have sufficient equity available to use a home equity loan, or other types of loans are not available. Some homeowners may turn to loans advertised as home improvement loans. Unfortunately, these loans can be high-interest unsecured personal loans marketed to homeowners undertaking specific projects. Personal loans are certainly an option for finishing your basement, but they can come with certain drawbacks, including lower borrowing power, higher interest rates, and shorter repayment periods. These types of loans are often well-suited for smaller, lower-cost projects. 

 

Trust Aspire Construction for All Your Basement Refinishing Projects

If you’re looking to remodel or refinish a basement, make the most of your dollars by partnering with proven remodeling professionals. Our experienced, dedicated team is committed to developing quality projects that fulfill each client’s dreams while respecting your budget. With over 40 years of experience in Utah, there’s no project that we can’t handle. Get a quote for your basement remodel by contacting us today. 

Paying To Finish Your Basement | Aspire Construction

Finished Basement with Pool Table and Sink - Utah Home

Five Ways to Customize Your Home’s Basement

By Basements

Your home is your sanctuary, where you can relax and enjoy time with your loved ones. However, you could be missing out on more of that precious space than you realize. Basement finishing is the best way to ensure that you maximize your home’s potential.

Finished basements are the ideal space for family and friends to meet. Working with the right professional, you can make your downstairs as functional and beautiful as the rest of your home!

Along with being the perfect entertainment spot, basement renovation and remodeling can quadruple the living square feet of your home. Think about it— when you work with a basement finishing contractor, you add more bedrooms, bathrooms, and living spaces to the floor plan. These additions will increase the livability of your home while simultaneously raising the total value of your property.

It’s easy to understand why basement finishing in Utah is so popular. A few of the most rewarding benefits of a finished basement include:

  • Higher property value
  • Additional living space
  • Updated design
  • Option to rent it out
  • Separate space for visitors
  • Room for entertainment
  • Flexibility
  • Save on energy costs

Here are five ways to make your project a success.

Basement Finishing Inspiration

 

Add a Kid’s Playroom

Now that you doubled your living space, your kids can have a separate area all for themselves. Basement playrooms are perfect for little ones and help keep clutter at bay. Plus, you can easily convert the space into a bonus room for your pre-teens and teenagers as they grow.

Working with our basement remodeling contractors, you can design a cozy, relaxing space. Together, we will find unique ways to bring this space to life.

Customize Your Basement with a Theater Room

Finished Business Basement
Nothing hits the spot quite like a home theater. Whether your family enjoys weekly movie nights or another hang-out spot,  a theater room could be just the ticket.

With comfortable seats, surround sound systems, and a giant TV, you can turn your basement remodel into the movie theater of your dreams. Some people choose to use a projector instead of a television, or you can opt for a more traditional route by sticking to a massive flat-screen TV.

You can have our contractors create a projection set-up or build a full-scale theater setup with multi-level seating. Whichever you choose, our team always recommends including a snack area in your design because nothing is better than eating treats while watching your favorite film in your home theater.

Turn Your Basement into an In-Law Apartment

Perhaps your unfinished basement would be better suited as an in-law apartment. These renovations are the perfect option for homeowners with older parents, children, or who are interested in earning a second income.

Not only does it offer tremendous flexibility by providing extra living space for visitors, but it can also be a new stream of revenue.

Consider all the items you would need if you were to live in your basement. Some of these might include:

  • Bathroom
  • Bedroom
  • Living room
  • Kitchen
  • Closet space
  • Washer and dryer

To design a basement apartment that meets your needs, contact Aspire Construction. Utah homeowners depend on our contractors for everything their renovation might require. Together, we can create a space that you will love now and in the future.

Add a Kitchen for Guests to Use

Kitchen Remodel with White & Dark Mix Cabinets - Aspire Utah Kitchen Remodeling Services
If you want to turn your basement into the luxurious haven of your dreams, don’t forget to add a kitchen. We suggest opting for an open floor plan with a full-size kitchen that flows into an ample living space.

This design will allow you to entertain guests without ever leaving your basement. It can even open into your backyard, which is the perfect option for large gatherings!

You can create a beautiful kitchen basement with the help of our experienced team. Our most recent projects include kitchens with large islands, beautiful appliances, wide-plank flooring, ceiling beams, and wood walls.

Whatever you imagine for your basement kitchen—trust our team to make it a reality. We offer endless design options to ensure your project has everything you need and more. Contact us to learn more about our basement remodeling services.

Make Your Basement Yours with Aspire Construction

In the end, there are many ways to customize your space, but when it comes time to find a contractor, consider Aspire Construction.

We offer a wide variety of design options to make your custom-finished basement as unique as you envisioned.

Combine our contracting services with our skills and experience, and it is no wonder why we are Utah’s choice for basement renovation.

Contact us to get started today.