Living Room RemodelShould You Do It_780x440

Living Room Remodel: Should You Do It?

Living room makeovers can happen in various stages—they don’t have to be all or nothing. Simple, affordable updates like new lighting, paint or flooring can have a big effect on the room’s welcoming vibe.

Whether you have the budget for a total overhaul or you’re just looking for an easy update, there are some ways to get the living room remodel that works for you.

Recommended: Home Improvement Cost Calculator

Living Room Remodel Ideas: Top Elements To Change

Layout

Effective use of space makes a room feel comfortable and inviting. If your living room seems underused, perhaps changing the layout will make family and friends want to hang out in it more often.

For someone moving into a new home and starting with a blank space, looking first to the layout of the room is a good starting point. Where do you enter the room? Where does your focus go first? Are the windows situated for convenient placement of furnishings?

If you’re currently living in the home, but the living room just isn’t functional, look at the layout in terms of what can be easily changed.

What in the room do you regularly use, e.g., couch or closets? Where do piles tend to accumulate? Do the windows cause a glare on the television? Is your furniture arranged to allow for good traffic flow? The more effortlessly the room setup can support your daily movements, the better.

Recommended: Home Equity Loans vs Personal Loans for Home Improvement

Windows

Windows not only let light in, they affect our perception of how large, open, and welcoming a space is. Replacing them can be pricey, but might increase a home’s value and can generate energy savings: On average, 25% to 30% of a home’s energy use is due to heat gained or lost through the windows .

If the window itself is fine but the aesthetic is not, new window trim or window treatments can make a world of difference. Painting dark-stained trim can make a space feel lighter, brighter, and more modern.

Updating window treatments with floor-length curtains adds drama and interest, while Roman shades that fit inside the window casing keep things unobtrusive while still adding texture.

Lighting

Lighting is functional, of course, but it can also be an aesthetic choice. Think about taking a picture indoors with or without a flash: Room lighting has that same sort of visual resonance, affecting how the other elements of the room appear and how you feel in the space.

In choosing lighting for your living room remodel, consider if you want the fixture to recede out of sight or be a visual focal point. How bright or dim, warm or cool do you want your light levels? Where in the room will you need the most light? And adding dimmer switches to any lighting setup gives you loads of control.

Ceiling

Like the sky outside, what’s hanging above our heads indoors dramatically affects how we feel in a space. If you have a textured or popcorn ceiling, refinishing it to be smooth can instantly brighten and update your living room. It’s a messy DIY project, but one experienced painters or contractors can do while keeping the mess to a minimum.

If the ceiling would benefit from a new coat of paint, veering from the standard white might give the room a stylish quality. Light hues can create the illusion of a taller space, while something a little darker can evoke coziness.

Flooring

Along with layout and paint, flooring has perhaps the biggest impact on a room. It’s a large, dominant, visual element that affects how sound echoes in the room or carries beyond it, how much light reflects into the room, and how much dirt shows up.

When buying a new home, checking what’s under the carpet might reveal lovely hardwood floors in pristine condition—or it might reveal a mess of a subfloor. Knowing what you will have before signing the mortgage agreement will allow you to make a plan for any needed renovations. For a quick change, don’t underestimate a simple area rug.

Recommended: Top 10 Home Projects With the Highest ROI

Molding

Molding hits the sweet spot of a decorative finish that feels structural. The trim around windows and doors, crown molding and baseboards, picture and knee rails—all inform the character of a space and add visual interest and structure. In particular, if things feel blank or sterile, adding decorative trim can make a space a little more impressive.

Paint

Fresh paint works wonders. Even if you don’t have time or budget for anything else, reimagine the wall color. Samples painted on the wall will show how the room’s light will affect the paint. Many paint brands now also offer virtual ways to “paint” your room.

Just as a room’s lighting can affect your mood, paint color has an effect on one’s psyche, too. For instance, the color blue has been shown to have a calming effect, while red has a stimulating effect and can create feelings of excitement or even stress in some people.

Furniture and Decoration

You can replace it, move it, or just pull it from another room. Alone or in conjunction with other major changes, furniture and decor have a major effect on the finished space—and keeping layout top-of-mind when selecting furniture will help make sure it’s the right stuff for the space.

Using online room planners or going old school with graph paper to map out, to scale, what will go where is a good way to experiment without the heavy lifting.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Deciding how much you can—or want—to invest in a living room remodel is likely the place to start after deciding changes need to be made. Some changes, like moving furniture from one room to another or changing a paint color, can probably be done inexpensively. But if the living room makeover is a total one, additional funding might be necessary. That’s where a home improvement loan from SoFi might help.

With lower interest rates than credit cards and no fees, using a SoFi unsecured personal loan to pay for home improvements can get your home into loveable condition in no time.

Check your rate on a home improvement loan from SoFi.



SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC), and by SoFi Lending Corp. NMLS #1121636 , a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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What Is the Difference Between Pending and Contingent Offers?

In casual conversation, people might use the words pending and contingent interchangeably when it comes to real estate. Both are statuses of a property’s availability, but they mean different things.

When a property switches to contingent, it means the seller has accepted an offer that is contingent on specific conditions requested by the buyer. That could involve anything from financing to an inspection.

When you see your dream home on the market switch to pending, that means the seller has accepted an offer and all contingencies have been addressed or waived.

The difference between these may be subtle, but the bottom line is, neither status means sold.

Contingent Offers vs. Pending Offers

What is a Contingent Offer?

When a home’s status switches to contingent, it means contingencies stand in the way before the deal is done. If closing on a home is a race, then buyers still have miles ahead of them when they enter the contingency process.

There are many types of contingencies buyers can include in their offer that make it easier for them to back out of a real estate deal, but these are some of the most common:

•   Financing contingency. The buyers put some money or the promise of a mortgage behind their offer, right? This condition ensures that if the buyers aren’t approved for a mortgage, they’re not on the hook for finding cash to buy the property. In fact, 10% of home sale contracts fell through in February 2021 because of financing issues, according to the National Association of Realtors. Some buyers choose to have a preapproval letter in hand to make the financing contingency move faster.
•   Inspection contingency. A home inspector will search the property top to bottom to uncover any issues. With a home inspection report in hand, buyers can ask the sellers to solve the issues or give them a credit against the purchase price of the home.

With this contingency, buyers can also walk away scot-free based on the findings of the inspection. Alternatively, if both parties don’t come to an agreement on repairs or credits, they can terminate the deal. Inspection issues caused 9% of real estate contracts to fall through in early 2021, according to NAR.
•   Appraisal contingency. In order to secure financing for a home, it must be professionally appraised for the value of the offer or more. If the home is appraised for less than the offer, the buyer can either make up the difference in cash, negotiate with the seller for a lower offer, or walk away from the deal. The NAR survey showed that 11% of real estate deals were terminated because of a problem with the appraisal.
•   Home sale contingency. If buyers need to sell their existing home to help finance the purchase of a new home, they may include a home sale contingency in the offer. That means if an offer on their home falls through, they’re no longer on the hook to buy the home they made an offer on.

Contingencies are in place to protect buyers and sellers in the event of snags throughout the negotiation process.

House hunters can include as many contingencies as they like in an offer, and if the sellers agree, the buyers will need to work through each one before they make it to closing.

For people salivating over a hot property that looks taken, contingencies may signal opportunities for a deal to fall through. If you have your heart set on a home that’s contingent, you can hold out hope. Thanks to contingencies, there’s a chance the existing offer will fall through.

What is a Pending Offer?

Just because a home is pending doesn’t mean the deal is done. A home often enters pending status once buyer contingencies are cleared, but it can also enter pending status immediately if a buyer makes an offer without contingencies.

A pending home sale may still fall through, but the buyer and seller have worked through most of the contingencies. For a pending sale to fall through, there likely has been an unexpected issue with the inspection or financing.

In fact, a pending home is still on the market. The listing agent and seller can choose to continue showing the home, and even accept other offers, even if its status is pending. However, this is largely up to the sellers and their agents.

Recommended: First Time Home Buyer Guide

Can Pending and Contingent Homes Take Other Offers?

If a home is contingent and the buyers are still working through the inspection, financing, or selling their current home, a competing buyer can make a backup offer on the property. If the initial offer falls through for any reason, the seller can take the other buyer up on their offer.

It’s up to the sellers whether they will accept a backup offer or not, but if the buyer loves the property, it can’t hurt to ask.

In many markets, a home with pending status means it’s not open to additional offers, but the deal isn’t sealed. It’s not over till it’s over, so the buyers could still back out based on their contingencies, as outlined above.

(A home could be marked “pending – taking backups,” indicating that the seller is still showing the house and accepting backup offers.)

When a home is pending or contingent, it’s not against the law for another buyer to ask for a tour, express interest in the home, or even make a competing offer. But compared with a home that is not under contract, it is less likely that a competing buyer will get the property.

It’s OK to make offers on these properties, but buyers shouldn’t get their hopes up. Depending on how close the buyer and seller are to closing, it’s not legally possible for the seller to accept another offer.

Additionally, the closer a home gets to closing, the more complicated competing offers can be. This is when a seasoned real estate agent may come in handy. They will understand the market, process, and legalities better than most first-time buyers do and how to navigate a hot house market.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Contingent vs. pending: Though some use the words interchangeably, the two statuses are different. A contingent deal may have a long way to go, as buyers firm up financing, await an appraisal, or sell their current home. A pending property is near closing, but the deal still isn’t final.

Buyers eyeing a choice property may hold out hope that contingent or pending deals fall through. In that case, having everything set up for a backup offer could pay off.

If you’re coming in with cash, OK. But if you’re like most mortals and are seeking a mortgage, being prequalified, and then preapproved, shows you’re a serious buyer.

On the hunt for a home and a mortgage? SoFi offers mortgage loans with competitive rates and as little as 5% down.

Check your rate with SoFi. It takes two minutes.



SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Third-Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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What Is A Conventional Home Loan?

Nothing compares to scrolling through listings until you find the home with the perfect garden, garage, and floors. Then comes the less fun part: figuring out how to finance your home purchase.

For the vast majority of people, acquiring a new home means taking out a mortgage, a loan for the part of the house cost that isn’t covered by the down payment.

U.S. homeownership hovers near 66%, and millennials continue to be the biggest share of buyers. What kind of loan do most go for? The 30-year fixed-rate mortgage. But conventional loan requirements vary, and some may find that a government-sponsored loan is a better fit.

Let’s take a closer look at conventional loan requirements and the difference between FHA and conventional loans.

Conventional Mortgages Explained

Conventional mortgages are insured by private lenders, not a government agency, and are the most common type of home loan.

Then there are government-guaranteed home loans. FHA loans are more commonly used than VA loans (for service members, veterans, and eligible surviving spouses) and USDA loans (rural housing). Government loans are often easier to qualify for.

Taking out a conventional home loan means that you are making an agreement with a lender to pay back what you borrowed, with interest.

And unlike with an FHA loan, the government does not offer any assurances to the lender that you will pay back that loan. That’s why lenders look at things like your credit score and down payment when deciding whether to offer you a conventional mortgage and at what rate.

See how SoFi can help make your
dream home a reality.


Two Main Types of Conventional Loans

Fixed Rate

A conventional loan with a fixed interest rate is one in which the rate won’t change over the life of the loan. If you have a “fully amortized conventional loan,” your monthly principal and interest payment will stay the same each month.

Although fixed-rate loans can provide predictability when it comes to payments, they may initially have higher interest rates than adjustable-rate mortgages.

Fixed-rate conventional loans can be a great option for homebuyers during periods of low rates because they can lock in a rate and it won’t rise, even decades from now.

Recommended: Adjustable Rate Mortgage (ARM) vs. Fixed Rate Mortgage

Adjustable Rate

Adjustable-rate mortgages have the same interest rate for a set period of time, and then the rate will adjust for the rest of the loan term.

The major upside to choosing an ARM is that the initial rate is usually set below prevailing interest rates and remains constant for six months to 10 years.

A 7/6 ARM of 30 years will have a fixed rate for the first seven years, and then the rate will adjust once every six months over the remaining 23 years. A 5/1 ARM will have a fixed rate for five years, followed by a variable rate that adjusts every year.

An ARM may be a good option if you’re not planning on staying in the home long term. The downside, of course, is that if you are, your interest rate could end up higher than you want it to be.

Most adjustable-rate conventional mortgages have limits on how much the interest rate can increase over time. These caps protect a borrower from facing an unexpectedly steep rate hike.

Conventional Home Loan Requirements

Conventional mortgage requirements vary by lender, but almost all private lenders will require you to have a cash down payment, a good credit score, and sufficient income to make the monthly payments.

Many lenders that offer conventional loans require that you have enough cash to make a decent down payment. Even if you can manage it, is 20% down always best? It might be more beneficial to put down less than 20% on your dream house.

You’ll also need to demonstrate a good credit history. For example, you’ll want to show that you make loan payments on time every month.

Each conventional loan lender sets its own requirements when it comes to credit scores, but generally, the higher your credit score, the easier it will be to secure a conventional mortgage at a competitive interest rate.

Most lenders will require you to show that you have a sufficient monthly income to meet the mortgage payments. They will also require information about your employment and bank accounts.

Recommended: Mortgage Calculator

How Do FHA and Conventional Loans Differ?

One of the main differences between FHA loans and conventional loans is that the latter are not insured by a federal agency.

FHA loans are insured by the Federal Housing Administration, so lenders take on less risk. If a borrower defaults, the FHA will help the lender recoup some of the lost costs.

FHA loans are easier to qualify for, and are geared toward lower- and middle-income homebuyers. They require at least 3.5% down.

Additionally, the loans are limited to a certain amount of money, depending on the geographic location of the house you’re buying. The lender administering the FHA loan can impose its own requirements as well.

An FHA loan can be a good option for a buyer with a lower credit score, but it also will require a more rigorous home appraisal and possibly a longer approval process than a conventional loan.

Conventional loans require private mortgage insurance if the down payment is less than 20%, but PMI will automatically terminate when the loan balance reaches 78% of the original value of the mortgaged property, unless the borrower asked to stop paying PMI once the balance reached 80% of the original property value.

FHA loans require mortgage insurance, no matter the down payment amount, and it cannot be canceled unless you refinance into a conventional loan.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

A conventional home loan and FHA loan differ in key ways, such as credit score requirements. If you’re ready to make your dream house a reality, you’ll want to size up your eligibility and your mortgage options.

SoFi offers fixed-rate mortgage loans with as little as 5% down and terms of 10, 15, 20, and 30 years.

It takes just two minutes to get prequalified online.



SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC), and by SoFi Lending Corp. NMLS #1121636 , a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Understanding Seller Concessions

Buying a new home requires managing a lot of moving parts, from mortgage preapproval to closing. Even after an offer is accepted, buyers and sellers are still at the negotiating table. If closing costs or surprise expenses become too much for the buyer, a seller concession could help seal the deal.

Although seller concessions can work to a buyer’s advantage, they are neither a guaranteed outcome nor a one-size-fits-all solution for every real estate transaction.

To determine if seller concessions are the right move from a buyer’s perspective, here are some key things to know, including what costs they can cover and when to consider asking for them.

Recommended: How Much Are Closing Costs on a New Home?

What Are Seller Concessions?

Seller concessions represent a seller’s contribution toward the buyer’s closing costs, which include certain prepaid expenses and discount points. A seller concession is not the equivalent of a price reduction; nor is it received as cash or a loan discount.

Closing costs usually range from 2% to 5% of a home’s purchase price. When combined with a down payment, the upfront expense of buying a home can be burdensome, especially for first-time homebuyers.

Buyers can ask for concessions on the initial purchase offer or later if the home inspection reveals problems that require repairs.

Although this can be a helpful tool to negotiate a house price, there are rules for eligible costs and limits to how much buyers can ask for.

Recommended: Home Buyer’s Guide

What Costs Can Seller Concessions Cover?

A buyer’s closing costs can vary case by case. Generally, buyers incur fees related to the mortgage loan and other expenses to complete the real estate transaction.

There are also types of prepaid expenses and home repairs that can be requested as a seller concession.

Some common examples of eligible costs include the following:

•   Property taxes: If the sellers have paid their taxes for the year, the buyer may be required to reimburse the sellers for their prorated share.

•   Appraisal fees: Determining the estimated home value may be required by a lender to obtain a mortgage. Appraisal costs can vary by geography and home size but generally run between $300 and $500.

•   Loan origination fees: Money paid to a lender to process a mortgage, origination fees, can be bundled into seller concessions.

•   Homeowners insurance costs: Prepaid components of closing costs like homeowners insurance premiums can be included in seller concessions.

•   Title insurance costs: A title insurance company will search if there are any liens or claims against the property. This verification, which averages $1,000 but varies widely, protects both the homeowner and lender.

•   Funding fees: One-time funding fees for federally guaranteed mortgages, such as FHA and VA loans, can be paid through seller contributions. Rates vary based on down payment and loan type.

•   Attorney fees: Many states require a lawyer to handle real estate closings. Associated fees can run $500 to $1,500, based on location.

•   Recording fees: Some local governments may charge a fee to document the purchase of a home.

•   HOA fees: If a home is in a neighborhood with a homeowners association, there will likely be monthly dues to pay for maintenance and services. A portion of these fees may be covered by the seller.

•   Discount points: Buyers may pay an upfront fee, known as discount points, to lower the interest rate they pay over the life of the mortgage loan. (The cost of one point is 1% of the loan amount.)

•   Home repairs: If any issues emerge during a home inspection, the repair costs can be requested as a seller concession.

Closing costs can also be influenced by the mortgage lender. When shopping for a mortgage, evaluating expected fees and closing costs is a useful way to compare lenders. Factoring in these costs early on can give buyers a more accurate idea of what they can afford and better inform their negotiations with a seller.

Recommended: Home Improvement Calculator

Rules and Limits for Seller Concessions

Determining how much to ask for in seller concessions isn’t just about negotiating power. For starters, the seller’s contributions can’t exceed the buyer’s closing costs.

Other factors can affect the allowable amount of seller concessions, including the type of mortgage loan and whether the home will serve as a primary residence, vacation home, or investment property.

Here’s a breakdown of how concessions work for common types of loans.

Conventional Loans

Guidance on seller concessions for conventional loans is set by Fannie Mae and Freddie Mac. These federally sponsored enterprises buy and guarantee mortgages issued through lenders in the secondary mortgage market.

With conventional loans, the limit on seller concessions is calculated as a percentage of the home sale price based on the down payment and occupancy type.

If it’s an investment property, buyers can only request up to 2% of the sale price in seller concessions.

For a primary or secondary residence, seller concessions can add up to the following percentages of the home sale price:

•   Up to 3% when the down payment is less than 10%
•   Up to 6% when the down payment is 10-25%
•   Up to 9% when the down payment is greater than 25%

FHA Loans

FHA loans, which are insured by the Federal Housing Administration, are a popular financing choice because down payments may be as low as 3.5%, depending on a borrower’s credit score.

For this type of mortgage, seller concessions are limited to 6% of the home sale price.

VA Loans

Active service members, veterans, and surviving spouses may qualify for a mortgage loan guaranteed by the Department of Veterans Affairs. For buyers with this type of mortgage, seller concessions are capped at 4% of the home sale price.

VA loans also dictate what types of costs may qualify as a seller concession. Some eligible examples: paying property taxes and VA loan fees or gifting home furnishings, such as a television.

Seller Concession Advantages

There are a few key ways seller concessions can benefit a homebuyer. For starters, they can reduce the amount paid out of pocket for closing costs. This can make the upfront costs of a home purchase more affordable and avoid depleting savings.

Reducing closing costs could help a buyer make a higher offer on a home, too. If it’s a seller’s market, this could be an option to be a more competitive buyer.

Buyers planning significant home remodeling may want to request seller concessions to keep more cash on hand for their projects.

Seller Concession Disadvantages

Seller concessions can also come with some drawbacks. If sellers are looking for a quick deal, they may view concessions as time-consuming and decline an offer.

When sellers agree to contribute to a buyer’s closing costs, the purchase price can go up accordingly. The deal could go awry if the home is appraised at a value less than the agreed-upon sale price. Unless the seller agrees to lower the asking price to align with the appraised value, the buyer may have to increase their down payment to qualify for their original financing.

Another potential downside is that buyers could ultimately pay more over the loan’s term if they receive seller concessions than they would otherwise. If a buyer offers, say, $350,000 and requests $3,000 in concessions, the seller may counteroffer with a purchase price of $353,000, with $3,000 in concessions.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Seller concessions can make a home purchase more affordable for buyers by reducing closing costs and expenses, but whether it’s a buyer’s or seller’s market will affect a buyer’s potential to negotiate. A real estate agent can offer guidance on asking for seller concessions.

The vast majority of homebuyers finance their purchase. So for most buyers, finding the right mortgage is an important step in landing their dream home.

SoFi offers home mortgages with competitive rates and down payments as low as 5%. And prequalifying takes just a few minutes.

Buying a home? Find out how much you could qualify for with SoFi.



SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC), and by SoFi Lending Corp. NMLS #1121636 , a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Is It Worth Doing a Laundry Room Remodel?

Laundry rooms are the workhorses of the home. They’re also often sandwiched into small spaces, or in areas of the home that aren’t all that convenient, causing some homeowners to consider a remodel.

Whether you should undertake a laundry room remodel depends on what you plan to use it for, its size, the kinds of appliances you need, and any special décor touches you’d like to add.

A remodel might be worth it if it creates a perky and efficient space or creates a room that has a dual function.

Before Starting Your Laundry Room Remodel

If you’ve been thinking about giving your laundry room a clean start, you’ve probably got a lot of ideas and inspiration swimming in your head.

Before embarking on your project, you want to really think through what you’re hoping to accomplish by asking yourself the following questions.

What’s the Scope of the Project?

Some remodels involve small improvements like new paint and cabinetry, while others call for tearing through walls, moving plumbing, or even relocating your laundry room to another area of the home.

Appliances should also be addressed. Will you need a new washer and dryer, or do you plan on using the ones you currently have?

What Do You Plan to Use Your Laundry Room For?

While most laundry rooms are used solely for handling laundry, others also act as mudrooms and storage for cleaning supplies, sports gear, and bulk shopping items like bottled water, paper products, and even pet food.

What your laundry room is used for will affect the laundry room remodel ideas available to you.

How Often and When Do You Do Laundry?

If you have a large family and do frequent washing and drying, that will influence the design of your new laundry room. You may need ample counter space for folding, for example, a fold-down ironing board, or bins to hold each person’s clean clothing.

If you tend to do the laundry during the day, you may consider adding a window. Are you more of a nighttime launderer? Under-cabinet lighting may help weary eyes.

What Are Your Must-Haves?

Some homeowners struggle with disorganization and need bins and baskets to keep things tidy. Others are looking to add features like a sink, or build out their laundry room to accommodate more counter space.

Whatever your desire, it’s a good idea to list what you can’t live without so you can build them into your budget.

How Much Can You Spend?

The scope of your project will dictate your budget and how you plan to pay for your remodel.

Some homeowners, seeing a laundry room remodel as a way to increase their home’s value, may opt to borrow to pay for the project. Others may choose to keep things scaled down so they don’t spend beyond what they have on hand.

Recommended: Home Improvement Cost Calculator

Laundry Room Remodel Ideas

Now that you’ve got the foundation of your project mapped out, it’s time to envision how your laundry room remodel will take shape. That will depend on the following factors.

If You Have Limited Space

Small laundry rooms can still pack a punch, thanks to creative ways to maximize your available space. You can do that by tucking laundry baskets under counters, adding a rod under cabinets to hang clothes, and using wall space for hooks to hang laundry bags or baskets that can hold clothespins, detergent, and dryer sheets.

Don’t forget that laundry rooms don’t need to be true rooms; if you’re short on space, consider tucking your washer and dryer into an unused closet and installing a farmhouse door for easy access.

Depending on its size, you can then use the prior laundry room as a guest room, home office, nursery, or kids’ playroom.

Recommended: Closet Remodel Guide

If You’ll Be Using the Room for More Than Cleaning Clothes

The list of ways to use a laundry room is endless, and will largely depend on each household’s needs.

•   Got a large dog? You might consider installing a pet-washing station, especially if you are already planning on undertaking plumbing work.
•   Need a quiet place to conduct conference calls at home? A fold-down workstation meets both needs.
•   Larger families may tuck an additional fridge in the laundry room.
•   People who love to entertain may find storage for plates and glassware in the laundry room.

Your Budget

A laundry room remodel can quickly add up if new plumbing, cabinetry, and construction work are involved.

If you find yourself running beyond what you’re willing to spend, think of creative ways to get the laundry room you want without breaking the bank.

That might entail painting cabinets instead of replacing them, using open shelving instead of custom built-ins, and opting for durable paint in place of tiled backsplashes.

Recommended: Easy Home Improvement Projects for Beginners

DIY vs. Calling In an Expert

Many homeowners are comfortable with do-it-yourself projects. In a laundry room remodel, these might include painting, replacing cabinetry, and installing shelving and hanging rods.

Other projects—moving water lines, installing new sinks or drywall, and demolition— require hiring a professional. Mapping out which projects you will need to outsource will affect your budget and may also affect the scope of your project.

Paying for It

Smaller laundry room remodels, or those that require just a new coat of paint, a new washer, and dryer, or a retrofitting of shelving to maximize storage space can be done with fairly little outlay, especially if you do it yourself or have a friend or family member lend a hand.

Larger ones, or those that call for extensive demolition, architecture work, or the services of a general contractor, will be more expensive, of course.

The size of the project—and therefore how much money you’ll need—matters, as does your timeline for paying back any loan.

Here are some options:

•   Cash
•   A home improvement loan, aka personal loan. Your home isn’t used as collateral to secure the loan.
•   A home equity loan or a revolving home equity line of credit, which do use your home as collateral.
•   Cash-out refinance, which replaces your mortgage with a new loan for more than you owe. The difference goes to you in cash, for home improvements or anything else.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Laundry room ideas range from DIY tweaks to soap-operatic overhauls. A laundry room remodel may increase the value of your home or simply make life a little easier. Start by listing what you want to achieve and how you’re going to pay for it.

SoFi offers a range of ways to pay for home improvements like a more inviting space in which to do laundry or a room that does double duty.

If you need a home loan (with as little as 5% down), an investment property loan, a cash-out refi, or an unsecured personal loan, SoFi offers all of them at competitive rates.

Plus you become a SoFi member, which comes with a laundry list of perks.



SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC), and by SoFi Lending Corp. NMLS #1121636 , a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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