Whether you want to make a few simple improvements to your home or want to construct an expensive new addition but don’t have money saved for it already, home improvement loans are your best bet and can provide you with a packaged financial assistance at incredibly low rates of interest. Here are some of the best home improvement loan options for you.
#1 Home equity loan
When you use your house’s equity as collateral to borrow money, it is known as a home equity loan. When you opt for this loan, you are allowed to borrow a certain percentage of the equity available to you. The exciting feature is the interest rates of these loans are much lower because your house itself is being used as collateral. The repayment can fluctuate anywhere between 5 to 20 years.
#2 Small loans
Another viable option is applying for small loans. Small loans are unsecured and therefore, nothing needs to be offered as collateral. Additionally, if you have a good credit score, you can be provided with a low rate of interest. Small loans are a great option for people who have a decent credit score and want some flexibility in repayments.
#3 Unsecured home improvement loan
Some people prefer not to put their homes on collateral. In this situation, there is another route you could opt for that can get you the money that you require. Certain banks provide unsecured loans for individuals to cover up for their home renovations. With this option, no other property is included to be given as a guarantee. However, the money that is available to be borrowed depends on the lender. There are certain drawbacks of taking this loan for your house improvements. The first being, the repayment term is much shorter than compared to home equity loan. Secondly, you will be required to pay a premium for security. Third, these loans are not eligible for interest deductions during the tax season.
#4 Credit cards
Using credit cards is a viable option for your home improvement project, especially if you have a low-interest credit card. This will give you some time in making the repayments. However, we would advise you to pay back the full amount to avoid any interest fees. If you don’t have a credit card, you can apply for 0% interest rate cards, which are usually on offer for the first few months.
Depending on the options available to you and the home improvements that you want, opt for the most beneficial option. Also, when you choose a loan, you should be clear about your repayment plans. There is no use opting for loans you are going to pay twice as much for.
Newly middle-aged wife of 1, Mom of 3, Grandma of 2. A professional blogger who has lived in 3 places since losing her home to a house fire in October 2018 with her husband. Becky appreciates being self-employed which has allowed her to work from 'anywhere'. Life is better when you can laugh. As you can tell by her Facebook page where she keeps the humor memes going daily. Becky looks forward to the upcoming new year. It will be fun to see what 2020 holds.