Mon to Sat: 09:00 am to 05:00 pm
Home Improvement Loans
We Just Need To Ask A Just A Few
Questions To Get You Started.
5 loan types for home improvement projects
Home Equity
Funded by the equity in your home and received in a lump sum, a home equity loan usually has a fixed interest rate and can be repaid anywhere between five and 30 years. On top of this, lenders will generally allow you to borrow up to 85 percent of your home’s equity for the project.
Home equity line of credit (HELOC)
A HELOC is another way to tap into your home’s equity. It allows borrowers to withdraw funds as the need arises for a set period. Interest rates can be variable or fixed.
Although these can be used for various financing needs, they are an excellent way to afford home remodeling as funds can become available for an ongoing home project. When comparing HELOC options pay close attention to available interest rates, terms and potential fees. Additionally, just like with traditional home equity loans, HELOCs also use your home as collateral, so it’s something to keep in mind when thinking about this type of financing.
Home equity line of credit (HELOC)
A HELOC is another way to tap into your home’s equity. It allows borrowers to withdraw funds as the need arises for a set period. Interest rates can be variable or fixed.
Although these can be used for various financing needs, they are an excellent way to afford home remodeling as funds can become available for an ongoing home project. When comparing HELOC options pay close attention to available interest rates, terms and potential fees. Additionally, just like with traditional home equity loans, HELOCs also use your home as collateral, so it’s something to keep in mind when thinking about this type of financing.
Personal Loan
A personal loan can be found from a range of lenders, with terms ranging from two to seven years and fixed APRs between 6.70 percent and 36 percent. One of the key benefits of financing a home improvement project with a personal loan is that these types of loans are typically unsecured, meaning they don’t require collateral. However, you’ll need good-to-excellent credit and a stable source of income to secure the best interest rates.
When it comes to using a personal loan to make improvements on your home it is important to consider the time and cost of your project. Home projects do not always stick to a schedule, and since the payments for personal loans sit on a specific timeline it is important to prepare for the unknown. Additionally, not all lenders allow funds to be used for home improvement, so consider that ahead of applying.
FHA 203(k) rehab loan
Supported by the Federal Housing Administration, an FHA 203(k) rehab loan is a financing option that combines both the cost to purchase the home and the cost to remodel or repair it. This single loan essentially does the job of two. Available rates are based on your creditworthiness and income and can be a 15- or 30-year fixed-rate mortgage or an adjustable-rate mortgage (ARM).
Cash-out refinancing
To benefit from cash-out refinancing you apply for a new mortgage on your home and then, pending approval, you will get an updated loan which is then used to pay off the old. The cash comes in the form of the “extra” amount found in the equity of your home.
Next Steps
A recent Bankrate survey found that 25 percent of Americans have delayed home improvements or renovations due to the current state of the economy. But as long as you approach finding a home improvement loan with care and diligence, you can bring your blueprints to life — with or without perfect credit.
See full article at Bankrate.com
-
-
-
620 S Blakely St,
Dunmore, PA 18510
