Home Improvement Loans
When you own a home and want to tackle some projects around the house you might want to look for a home improvement loan to pay for those projects. Home improvement loans can be used for everything from changing the hardware and fixtures in your house to building an addition or remodeling the kitchen. Because you are adding value to your home and home improvement loans are typically secured with equity, you will get a lower rate than you would with other types of loans.
People with good credit should have no trouble obtaining home improvement loans but if the home is already upside-down in the mortgage they might have to find an unsecured loan with a higher interest rate to qualify.
Here are some key tips for when you want to find the best home improvement loans:
- An unsecured loan will often have a higher interest rate than a secured home equity loan.
- The home improvement projects with the highest return on investment are: replacing exterior siding, replacing the entry door, minor kitchen remodel, garage door replacements, and window replacements.
- Landscaping is another project that will add curb appeal to your home if you are planning to sell your home soon.
- Determine how much money you will need before applying for a loan. Get estimates and be sure to add a cushion of 20-30% so you don’t run out of funds before finishing. This will help you decide which programs suit your needs the best.
- Compare programs from several different lenders to determine the best loan solution for your projects. Some projects are tax deductible and government grants are available to fix up homes in certain areas so it pays to do a bit of research.
Advice on getting the best home improvement loans:
When you want to get a home improvement loan be sure to check the application fees, interest rate, payment terms including the length of the loan, fees, late charges, and any penalties for early repayment. Try to make sure that the projects you are borrowing money for will add more value to your home than the cost of the loan. Always compare options from multiple lenders to get the best terms and find the program that meets your needs.
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