A home improvement loan can help you finance your next home remodeling project.
While remodeling your home has many benefits, such as increased functionality and appeal, it does not come without a cost. There is no sugarcoating it—home improvements are not cheap. For many homeowners, their dream kitchen or upgraded bathroom may seem unattainable because of the cost, but it does not have to be. Home improvement loans are available to help homeowners finance their home improvement projects. Before you embark on your home remodeling project, below are a few things you should know about home improvement loans.
Types of a Home Improvement Loan
- Home Equity Loans: These popular loans are secured loans, which means they use the equity in your home as collateral. Your home’s equity is calculated by subtracting your outstanding loan balance from your home’s current assessed value. Because these loans use collateral, they often have lower, fixed rates.
- Home Equity Line of Credit (HELOC): Like home equity loans, HELOCs allow you to borrow from your home’s equity without refinancing. Similar to a credit card, HELOCs enable you to borrow up to a preapproved amount, which, once you pay back, you can borrow from again. Unlike home equity loans, HELOC interest rates are adjustable and can fluctuate over time.
- Personal Loan: A personal loan is a type of unsecured debt, which means your home (or anything else) is not used as collateral. Since no collateral is involved, rates tend to be higher for these loans. Personal loans are readily available through traditional and online lenders.
How to Receive the Best Home Improvement Loan Rates
To receive the best rates with any lender, you will need a strong credit score and history. You can also add a cosigner with good credit to improve your rates. Before settling on a loan, shop around at different lenders and compare your rates and repayment terms to ensure you select the best option.
If you are considering a home improvement loan to finance your next home remodeling project, contact banks or other lenders to discuss your options; and when you are ready to begin your project, contact our team of professionals at Criner Remodeling. Whether you are looking to upgrade your bathroom, overhaul your kitchen, or add an in-law suite or other room to your home, Criner Remodeling can help. We have proudly served Newport News, Yorktown, York County, and the Hampton Roads Peninsula for more than four decades. From design to delivery, our team provides unparalleled customer service to turn your visions into reality. Contact us today to see how we can help transform your home.