When its time to make some improvements to your home, sometimes money can be hard to come by. But it doesn’t have to be. In fact, getting a home improvement loan can be simple and easy. Home improvement loans provide tax deductible funds for a total house remodel or specific improvements. You can transform your house into a dream home and increase your property value.
Home Improvement Loan Options
There are many different ways to go in order to obtain a loan to improve on your home. These types of loans can include lines of credit, loans and others. There is usually no equity required for financing your home improvements. The maximum loan can go as high as 125% of the current value of your home.
If you only want to borrow in a smaller amount and pay it off soon, a line of credit could be what you need. It will provide more flexibility with the convenience of withdrawing money in variable amounts as needed. For instance, as each small project is completed you then withdrawal for the next. Paint, and then lay the carpet! Credit lines have adjustable loan rates, with the potential of increasing over time.
On the alternate, if you are completely remodeling or doing any amount of major home repair or improvements that require a large loan amount a long term fixed rate payments can make your loan easier to pay off over a longer period of time.
Fixed rate home improvement loans provide payments that are affordable and come with your choice of 5, 10, 15, 20 or 30 years. These loans are also placed in second position on the property title and will not affect the terms of any existing first mortgage that may be in place.
Lenders will not usually place any sort of restrictions on your home improvement projects but, of course, must be within the boundaries of your local building requirements. And depending on the scope of the job, you also have the choice of doing the work yourself or using a home contractor.
Loan terms can range from 5 to 30 years. You can estimate monthly payments on different terms with our home improvement loan calculator and get a good idea of which loan would serve your needs best.
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