Online Calculators: Good First Step in the FHA 203(K) Rehab Mortgage Process
Online calculators provide a convenient way for homeowners to estimate costs of home remodeling projects that their FHA 203k rehab loans can finance.
Whether you hope to finish a basement, renovate your kitchen, replace a roof, or remodel your entire house, it’s important to estimate project costs early in the process in order to make good remodeling and financing decisions.
Home buyers can use the FHA 203k home loan program to purchase and renovate a home with one, low-rate mortgage. In addition, current homeowners can use the FHA home renovation loan to refinance their current mortgage and pay for remodeling work with one mortgage with a low interest rate.
The remodeling calculators provide several benefits to homeowners considering using an FHA 203k home renovation loan.
- They provide estimates instantly, and are quick and easy to use.
- They can let homeowners know early on if they won’t have enough money for all their plans or if they might be able to undertake more renovations.
- They can help homeowners control their remodeling budget and add or replace repair jobs as work proceeds.
- They can help homeowners judge if a contractor’s estimate is realistic.
Plus, loan officers can also use online remodeling cost estimators to help homeowners and home buyers pick the best remodeling options.
Limits of remodeling calculators
Homeowners should remember that results of remodeling calculators are only rough estimates. Only contractors provide truly accurate estimates.
And remodeling calculators available on the Internet have a range in quality. Some are less accurate than others, and some don’t offer actual price estimates.
Many offer a price range, accepting the reality that the calculators cannot possibly include all possible variables involved in a remodeling project. Homeowners should be cautious about calculators presenting a single price, since they don’t know if the estimate is on the conservative or high side.
Remodeling calculators typically start with a basic project, and then use an advanced algorithm and responses to a series of questions, such as property location, value of the home, and age of home, to reach a cost estimate.
Recommended home renovation calculators
DuPont has an excellent estimator for kitchen countertops, which even takes into account edge treatment and backsplashes.
New England Metal Roof offers a calculator for estimating roof replacement costs, and can include the cost of removing the old roof and the different costs of roofing materials. It calculates costs based on a general approximation of roof pitch, as opposed to an exact number, which can decrease accuracy of estimates, but most homeowners probably won’t get on their roofs to measure its pitch anyway.
RemodelOrMove.com, a homeowner advocacy website, provides calculators in addition to resources and other free tools to homeowners. One of its calculators helps homeowners decide if they should remodel their home, leave the property the way it is, or move to another home that better suits their needs.
The site also helps homeowners create a remodeling budget, organize their remodeling or moving plans, and locate remodeling or moving professionals.