Home Improvement Loan
A Home Improvement Loan is essential for most of us to be able to accomplish our home improvement and renovation projects this year...
Please note : Vintage Home Loan Article
but we must plan well...
to make sure that the financing or refinancing we take on is the best one available to meet our individual needs and circumstances now and for the full length of the loan.
THE ADVANTAGES OF
If you are looking for a HOME IMPROVEMENT LOAN option, other than using the equity built up in your home, then you may be thinking of a personal loan or an unsecured loan.
A PERSONAL OR UNSECURED LOAN
These loans are often readily granted to home owners as a home improvement loan and can be very useful in helping you realize your home improvement project, especially if it is for a fairly SMALL job.
They are usually more expensive with higher interest charges than a secured loan or a home equity loan, and the total loan amount available is usually much less, this is because...
One of the main advantages of a personal loan or an unsecured loan as a home improvement loan is that you can arrange shorter length of terms for repayment therefore avoiding longer terms and related interest charges.
At the end of the day they are cheaper, but please keep in mind our TOP TIP:... don't make the repayment terms too short that the monthly repayments are too high to deal with or that doesn't leave you enough left for over emergencies!!!)
If you are looking for home equity or secured loan financing options for your home improvement financing then please click here for these Home Improvement Financing Options
Take into consideration, when you do all the number crunching:
- How much of your income will be available to cover the monthly repayments of the unsecured home improvement loan.
- if you stretch the terms of the unsecured loan for a longer duration how much more is it going to cost you, how high will the interest charges be?
Understanding Interest Rates
- A Typical Rate is the average rate offered to a companies clients.
- The Exact Rate is what you will receive, which will depend on your own particular circumstances.
- A Variable Rate will fluctuate in line with any base rate changes.
- A Fixed Interest Rate will stay the same regardsless of changes in the base rate.
How can you decide how much to borrow?, well it's much easier now to check how much you can afford due to the internet. Many established, recognized lenders have a loan calculator on their web site.
The loan calculators will help to give you a clearer idea of your situation and help you when talking to your financial adviser about your home improvement loan.
Prepare well and Prosper
When you apply for a loan of any type, a credit check will be done and you will be given a score, if you apply to too many places and too many credit checks are done, this will probably affect your chances - even if your score is good.
PREPARE... the way as much as possible before applying, and don't wait until the last minute to try to arrange your financing for your home improvement loan.
SHOP AROUND, rates can vary enormously between lenders. The easiest way to compare rates is to compare the annual percentage rate APR. You are looking for the lowest APR.
READ THE SMALL PRINT, to check for any hidden charges and late repayment fines.
Borrowing more than you can afford and being unable to make repayments can result in you being sued - if you fail to repay the loan in full.
Failure to make repayments could result in you being blacklisted which would prevent you from getting any other form of credit in the future.
Make sure that you prepare the finances for your home improvement loan to help you and not add stress to your life.
Please Remember: the cheapest offer is not always the best...
a reputable loans company has to look after its brand name and will always be more reliable for service and good customer care for your home improvement loan.
If you live in the USA and want to...
Make Home Improvements
Build your dream home! America’s Lending Partners’ free loan request service will match you with up to four national or local lenders who can help you use your home equity to remodel, put an addition onto your home or make other home improvements. All credit types are welcome. Simply complete one secure form and get up to four loan offers.
For many of the better known companies, you may have to pay a little bit more than those offering "cheap loans", but you will find that some of them have done away with some or all of their "extra charges".
Smaller companies may hit you with more charges and poor customer service just when you need it most.
(...and suddenly the cheaper companies don't look so good!...)
Unsecured personal loans usually vary between 500.00 - 25,000 U.K. POUNDS, / $500.00 - $35,000 DOLLARS and are normally repayable on a monthly basis and like any loan, the longer the repayment terms are, the more expensive the loan, i.e. shorter home improvement loan terms could save you hundreds.
You may also be charged an annual or maintenance fee for your unsecured home improvement loan, another important reason to read all the small print and keep your repayment terms as short as is comfortably possible for you.
If your personal loan is a line of credit, then your repayments will be continually affected by fluctuating interest rates, even if only by small degrees. Or you could choose a lump sum home improvement loan which usually has a fixed interest rate.
Good Money Management
The unsecured loan that you require for your home improvement financing is most likely to be a fairly small amount to help you with repair, maintenance or redecoration costs or your smaller DIY endevours.
Your continued monthly repayments will soon pay off the total amount of your home improvement loan, allowing you to get on with your next home improvement project!
So, once you have your Home Improvement Loan taken care of by a good reputable lender... it's time for the best part - the start of your Home Improvement project...
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