Perhaps the most popular loan for home improvement would be the home equity loan. The home equity loan is secured by your home and generally has a low interest rate. This sort of loan provides a large amount of money at a fixed rate that can be used to fund major repairs or modifications to a home. However, if a series of repairs over a span of time are necessary, a home equity credit line may be more appropriate. With a credit line, you would be able to withdraw money as you needed it over a set period of time, instead of all at once. In this case the loan money would be kept in an account to which you would have access by using checks or a credit card.
Big home improvement projects can be both a joy and a hassle, with the rising expense often being the number one headache. Looking into the variety of available loans can take the stress out of making repairs and building additions.
Homeowners over the age of 62 may want to look into reverse mortgages, which are more flexible than home equity lines of credit but work much the same way, except the period of time from which money can be drawn from the count lasts the life of the borrower, and no monthly payments need be made to repay the loan. The loan is repaid after death of the owner or after the home is sold.
Find the loan that is right for you. Apply online to contact up to four lenders about home improvement loan.
A home improvement loan could be borrowed as any of the following:
- Home equity loan or second mortgage
- Home equity credit line
- Reverse mortgage
- Home equity conversion