Home Improvement Loans

HOME IMPROVEMENT LOANS

Home Improvement Loans: A Great Investment Opportunity

A Home Improvement Loan is a loan designed for individuals looking to finance home repairs, remodeling projects, room additions, a pool, new kitchen, or a new bathroom. These loans have many benefits including competitive fixed rates, which are usually lower than most credit cards. There are a few different options with this type of loan. One would be opening a Home Equity Line of Credit; another is a Home Equity Loan that utilizes the equity in your home for home improvement projects. Typically, you are adding to the market value of your home, which is always a great idea.

Home improvement loans can provide tax-deductible money for a complete remodel, or for specific improvements. A home improvement loan is essentially a Home Equity Loan or Second Mortgage on your owner occupied home, where the lender pays you the entire amount of the loan at closing. Note that home improvement loans are used for improving an existing home, not for building a new structure.

Important Things to Consider

Lenders normally do not place any restrictions on your home improvement projects, as long as they conform to local building requirements. You have the choice of completing the work yourself, or using a contractor.

If you are remodeling or doing major home improvements that require a larger loan amount, long term fixed rate payments can make you loan easier to pay off over an extended period of time.

If you only want to borrow a relatively small amount and pay off the loan quickly, a line of credit can provide more flexibility with the convenience of withdrawing money in variable amounts as needed. However, a Home Improvement Loan with a variable rate always has the potential to increase. Terms of Home Improvement Loans can range from 5 to 30 years. Deducting the interest of your loan payments is an important benefit.

Another good option is refinancing your current home mortgage. You may be able to lower your current payment even with taking cash out for home improvement by lowering your interest rate.

Contact AG Financial to see how we can help you with a home improvement loan today.