Home Improvement Financing
Vintage Financing article
If you are planning on doing small or substantial Home Improvements this year, then this is the right place to help you decide which of the different types of Home Improvement Financing Options is right for you.
Did you know... over $200 billion dollars are spent every year in the USA on financing home improvements.
Over 9 million families in the U.K. make improvements to their homes every year and these figures are due to rise over 2013 as homeowners take to doing more home maintenance and improvement projects themselves to try to save on the cost of calling someone in to get the smaller necessary jobs done.
Invest In Your Nest
Just think of all the people worldwide who have already re-invested in their nest and made their homes a more spacious, more comfortable place to live, especially so they don't have to go through the expense of relocating.
Adapting your interior and exterior spaces to your present day needs is the key to really enjoying your home and the latest of course is to adapt your home to clean green living.
Loan offers may be sparse but they should take into consideration the ever growing need for more Home Improvement Financing Options are fairly harsh but the cost of improving is usually far lighter then the cost of moving to a larger improved home in the same area.
Keep in mind that when you take on longer repayment terms you will have to pay more over a longer term but the main advantage for you lies in the greatly reduced monthly repayments in the 'here and now'.
Why Home Improvement
Over just a few years - from one extreme to another... the USA and the U.K. have both experienced rocketing property prices in the real estate market which have now turned into very slow property markets and unfortunately so many people actually losing their homes.
It's not just happening in America, it's a worldwide trajedy.
If you are a homeowner you will of course do your best to keep and protect your families biggest asset, but to get some perspective on what has been termed as a 'foreclosure tsunami' - our health is always more important.
In such a turbulent housing market our aims are to solidify our position regarding house payments, make sure that our home is properly maintained to help it maintain price and only then should we look at home improvement financing options to extend our homes.
Other factors why homeowners are renovating instead of moving are: fluctuations of interest rates and overtly expensive moving costs which have contributed to more home owners than ever before taking a new look at their own home and assessing it's present value against its true potential.
Whether you live in the USA, in the U.K. or elsewhere, your first thought, for the type of Home Improvement Financing Option that will be suitable to you, must be to assess thoroughly the type of home improvement you decide to do and if you are planning to do most or all of the work yourself or call in a contractor.
Financing Your Improvement Project
If your home improvement financing project is mainly concerning smaller, but important repairs for example, replacing gutters, replace a couple of windows, putting in a sky light, updating the furniture in your family living room etc., then taking out a HOME IMPROVEMENT LOAN or a SECURED PERSONAL LOAN, may be sufficient to meet your needs.
If You Do Most of the Work Yourself!
If your planning home improvement financing for a bigger project, but your still going to "do it yourself", or at least the major part, then you really should to seek more advice from you financial advisor because, depending on your individual circumstances, you may be toeing the line between needing a personal HOME IMPROVEMENT LOAN or a HOME EQUITY LOAN to cover your project.
Call in the Professionals
Take a closer look at HOME EQUITY LOAN or HOME EQUITY LINE loan offers, especially if you don't have the time necessary to dedicate youself to your home improvement project or if you are not D.I.Y. inclined.
If you feel as many of us do, that you just want to "get the job done", then you need to call in the professionals for construction work, carpentry, plumbing and wiring, for major repair jobs, maintenance, conversions and building projects.
Because of the numerous Home Improvement Financing Options available to us today, many of us can now tackle those bigger, more expensive jobs like re-tiling the roof and building that extension.
Work The Numbers
To get off to a successful start for your home improvement financing you really do need to work the numbers to see which home improvement financial option will work best for you.
Your starting point is the value of what you already own. Take into consideration how much equity you have invested in your home so far and what amount is outstanding. How high are your monthly repayments and how much higher you can go.
If you manage to consolidate your existing payments with your home improvement financing loan, you may well end up paying less per month over a longer period.
Keep working the numbers for your project, take into consideration payments to contractors, sub-contractors, general labor, materials (including paint, flooring, insulation, tile... and delivery of...), payment for plans, permissions and permits, tools, safety equipment, fixtures insurance, AND a contingency amount for any unplanned expenses.
For those who have already paid off a large part of their mortgage, refinancing or remortgaging options are easy, but good news for home owners with little or no equity saved up in their homes, you are much more likely now to succeed in securing a decent personal loan than ever before.
Your Home Improvement Financing Options
A Home Owner Secured Loan...
Is available for many different purposes. The loan requires the borrower to provide the lender with security, in this case, your property.
For many with smaller projects, this type of loan lets you realize your dream without touching the equity in your home. If you intend to pay back the principal over a short term, a line of credit can cost less than a home equity loan.
A Home Equity Loan...
A home equity loan is a standard loan based on the amount of equity that you have built up over the years - the value that you have paid into your house. This is the most popular type of home improvement financing.
A home equity loan lets you access it in ONE LUMP SUM to cover your home improvement financing costs.
Another advantage is the long term fixed rate payments available, making the loan easier to pay off over a longer period.
Getting a Better Deal
Changing your present mortage for one with better terms is also another great way of potentially saving and therefore freeing up capital for your home improvement projects...
Online mortgage calculators give you a very rough idea of what can change for you by helping you compare what you are paying now as opposed to what you could be saving to enable you to further invest in your home.
In modern times with more flexibility being given to meet the different demands and situations of prospective or present home owners, there are different and often more advantage home mortgage terms available to us now.
Home Equity Line of Credit
The Home Equity Line of Credit is similar to the home equity loan, except it works like an open line of credit instead of one lump sum.
You are able to make payments to contractors and pay for materials as you go along with a credit card or from a chequeing account. You can take out funds as and when you need to.
Remember, the equity line loan is usually not fixed rate and your repayment amounts will be subject to rate fluctuations - However - some companies are now starting to offer a home equity line of credit with a fixed rate!.
The interest you pay on your Home Equity Loan or Home Equity Line of Credit is OFTEN completely TAX-DEDUCTABLE.
It is worth checking with your financial advisor / loan officer to see is this applies to you.
*Please Note: It is better not to apply for a home equity loan if you plan to refinance your first mortgage in the near future.
Refinancing your mortgage will give you the advantage of lowering your monthly repayments (sometimes by half), thus freeing up substantial cash for your home improvement project.
A Refinance Mortgage may well be a Win Win option for you, your home improvement financing project and your lifestyle.
Keep in mind that your current mortgage lender, probably your bank, may not have the best rates. Shop around before you decide. You are looking for the best deal that suits your particular needs.
Whoever you decide to go with, You should choose a company with a proven track record and well documented customer care and with readily available TESTIMONIALS from happy clients.
You need a company that respects your security, privacy and who works with a caring yet professional approach.
This important message should be clearly visable on their web site and on all other literature:
"YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS
ON A MORTGAGE OR OTHER LOANS SECURED ON IT"
YOU DON'T want a company that is prepared to lend you more that you can afford, or who allows you to go to the limits of your finances. (remember to read ALL of the SMALL PRINT regarding terms)
The Right One For You
Of the thousands and thousands of financial lending companies out there, it is important to find one with good informative information and easy to contact details.
Look for a RECOGNISED LENDER, there are excellent companies out there, MANY who have won prizes and acclaim for their excellent service to people like you and me.
Types of loans for home improvement financing and peoples personal situations vary widely. Offers and terms are continually changing in the financial world.
Make a short list of 6 homeowner loan companies - some of which may have been recommended to your by family and friends.
Get all the help and advice you need NOW so that you can get started with your home improvement project.
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