Oftentimes with large projects, customers are not paying as they go, but rather pulling from reserves or investments to fund the project. The bank has vehicles that they can use to finance the projects, based on what they have left on their current mortgage, with the equity on their home.
While remodeling costs are not added to a mortgage, they can potentially be covered by a second mortgage, line of credit, or personal loan, etc. Many of our clients choose to self-fund their project, pulling reserves from investments, cash accounts or other liquid assets. However, other options are available through banks, mortgage companies, etc. Aaron & Co. recommends that clients speak with their banker or financial advisor as to the best option for their project. We are happy to work with our client and/or lender to develop a payment structure that works.