Are you ready to remodel your home and turn it into the space you’ve always dreamed of? If you’re like the majority of Americans, you’ll need to secure financing to make it happen. An unsecured home improvement loan is the best option to quickly secure cash and get your remodel underway.
Those looking for an unsecured home improvement loan may borrow as little as $5,000 up to $100,000 or more. Interest rates vary depending on credit scores and the market. Terms of the loan will also vary, depending on the lender and contract.
What You Need To Know About Home Improvement Financing
Home improvement loans are one of the most convenient types of personal loan options out there. Whether you’re looking to do some minor updates, repair a roof, or completely gut your kitchen, a home improvement financing loan can help you do just that. Keep reading to learn about the benefits of a home improvement loan.
You’ll Get Your Cash Quickly
Unlike other types of loans that require a long processing period, home improvement loans have a quick turnaround. Once you’ve applied for the loan, you could have the money in your bank account in just one or two days. This is a huge perk for those who need to get started on a project quickly, such as someone who needs to make an urgent repair or for someone flipping a home.
There’s Tons of Flexibility
A homeowner can get a home improvement loan for a variety of purposes. Whereas other types of loans can only be used for very specific spending, a personal loan like this can be used for a small project, major repair, bathroom remodel, etc. You have total control over how you use the money.
Alternatives to Home Improvement Loans
A personal loan is a great option for quick funding and flexible spending, but there are other options for home improvement financing. Here are just a few examples:
Refinancing can lower your interest rate and monthly payments on your home, freeing up cash to put toward a home remodel project. This requires you to use your home as collateral, so you’ll want to weigh the pros and cons of this option carefully.
Home Equity Line of Credit
This is another way to borrow against the value of your home, but it doesn’t affect your original mortgage. Instead, you get a line of credit allowing you to draw out money for a certain period, depending on the lender, followed by a repayment period. Make sure you understand the terms of the loan and what kind of payments you need to make during the draw period. It may be to your advantage to pay off the loan during the draw period as the interest rate may go up in the repayment period.
Using your credit card to finance a home remodel is technically an option, but most people avoid this route because of the high-interest rates. Unless you’re able to quickly pay off the balance, it’s best to choose another type of financing.
Financing through a Contractor
Many people don’t know about this option, but you should also consider home improvement financing options through your contractor . Many construction companies will partner with banks to offer financing packages to their customers. If you are hiring out a contractor, talking about financing options is a worthwhile conversation to have.
Choose the Best Option For You
After reading this post, you should have a better idea of the various home improvement financing options out there. Choose the best option for you by doing careful research and contrasting how much you’ll end up spending in the long run. A home improvement project is a great way to enhance your environment and lifestyle, and your research will pay off. Thanks to Enerbank for contributing!!