Home improvement loans allow you to take out equity to improve your house. With the right home improvement, you can dramatically increase your home value. Which home improvement loan is right for you?
First of all, look at any personal characteristics that could give you access to superior loans. For example, are you a veteran? A veteran might pay lower interest rates under a VA Home Improvement Loan.
These are key personal loan advantages:
- No Equity
You don't need any home equity for personal loans. You can also borrow less money.
These are the personal loan advantages:
- Higher Rates
- Shorter Repayment
You must pay higher interest rates on personal loans. They have a shorter repayment schedule.
Home Equity Loan
You could look for loans with a very specific function (i.e. energy efficiency.) The FHA Loan for Energy Efficiency helps you create a green home. See if you qualify for these home improvement loans.
These are key home equity loan advantages:
- Lower Rate
- Tax Deductible
Home equity loans tend to be larger, tax-deductible and have lower interest rates.
These are the home equity loan disadvantages:
- Equity Reduction
- Foreclosure Risk
- Longer Repayment
You lower your home equity. This could increase your foreclosure risk. It takes longer to repay home equity loans.
So, what have we learned? Which home improvement loan is best? It all depends on what you need.
Write down what you want to accomplish, along with how much money you need. Then, weigh the advantages and disadvantage of each loan. Improve your home and increase its value.
Home Improvement Projects
So, which home improvement project will add the most value to your home? Experts disagree vehemently on the exact project, but agree that improving your curb appeal, kitchens and bathrooms is important. But how does window replacement and tinting rank?
Of course, you can see windows from the outside, so they improve your curb appeal. Eco-friendly windows can help keep your home warming during winter and cooler during winter, saving you money for the long-term. Of course, full window replacement is very expensive, but fortunately if you like your windows as they are now, window tinting is an affordable and minimally invasive alternative with the same benefits.
If you’re looking to improve your home, make sure to check out our services! And if what we can do isn’t impressive enough, spend some time reading some of our honest customer reviews and see how others thought about their experiences!