Home Improvement Loans

By on January 17, 2014

A home improvement loan allows you to spread the cost of your project with a clear view of what you’ll pay each month from the start until you can afford to pay it off. Home Improvement Loans take care of the interest and principal, and you don’t pay the fees for taking on the home improvement project.

You can qualify for a home improvement loan on your home if you’re looking to build a complete renovation on your own or to refurnish a broken down or new home.

Interest Rates on Home Improvement Loans

According to companies like SoFi, if you need a home improvement loan, you need to know what kind of interest you’ll be paying each month. These interest rates are published by the central bank every month.

Interest rates on home improvement loans are often the highest available. Not all lenders offer the lowest interest rates, as some offer lower rates.

To compare how much interest you will have to pay, you need to compare the loans available with the fees and interest rates. Keep in mind that the loan terms and total monthly payments will vary based on your income.

If you need a loan to invest in your home, consider refinancing your home purchase. This will allow you to get the best interest rate possible.

Loan Approval Requirements

To get approved for a home improvement loan, you must meet the following requirements:

You cant currently use the home loan money for the purchase of another property. You must either have the previous home financed at a low rate or you need to refinance your home to purchase another home

You’ve spent at least a year at your current address. If you have moved to a different place within a year, you will need to apply for another home improvement loan.

you cant qualify for a home improvement loan if you’ve lived in your home for less than 1 year and have paid more than $10,000 in property taxes and insurance

You don’t need to complete an application for a loan if you have already filed for bankruptcy or sold your home. In addition, you can file the application and pay your loan fee online.

Refinancing Your Home Purchase

When you refinancing your home purchase to finance the renovation of your old home, you may qualify for the lowest home improvement loan interest rate.

Not all home improvement loan companies offer refinancing. These refinancing companies may offer lower interest rates for you to choose from. However, many of these lenders limit the amount you can finance in your home.

 

Home improvement loan programs can also differ from one bank to another. Talk to your current lender to find out which loans they offer and to see if you are eligible.

Bottom Line on Home Improvement Loans

Home improvement loan rates vary widely based on how much your home is worth and what you’re doing with it.

There are a number of ways you can manage your homes maintenance and costs, so the amount of money you’ll need to spend on the repairs and upkeep can also depend on your personal budget and financial situation.

The home improvement loan market is one you need to keep an eye on as you’ll need to be prepared for large up front costs and potential lengthy refinancing costs.

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Member of the Lake Realty Team providing information about Lake Norman and Lake Norman Real Estate. Google+