Still, there are several other factors to consider. The first is that Marcus caps home improvement loans at $40,000, so if you need more to fund an extensive project, Marcus may not be the right lender for you. It can also take Marcus five business days to fund your loan, which means you’re in for a longer wait than you will be with lenders like Earnest.

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Until recently, borrowing money for a new kitchen, second-story addition, or other home improvement meant going to the bank, seeing a loan officer, and hoping for the best. Today, however, you have many more options to help finance home improvements. A mortgage broker, for example, can offer more than 200 different loan programs. And brokers are just one of the many lenders eager to put together a loan that fits your situation—even if your credit history is less than perfect.
That low interest rate has a price, however. There might be hefty closing costs and more application hoops to jump through because these loans, like applying for a mortgage, put your property up for collateral. You'll also need to have enough equity in your home to qualify. For example, if your home is appraised at $200,000 and your mortgage is currently $150,000, you have $50,000 in equity that could be tapped. To reduce risk, lenders usually limit the amount of loans you can have on your home to about 85 percent of your home's value. So in this example, 85% of $200,000 is $170,000; after subtracting the current mortgage amount of $150,000, you're left with $20,000 you could qualify for.
Disclaimer: Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. If your application is approved, your credit profile will determine whether your loan will be unsecured or secured. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment Example: Monthly payment for a $10,000 loan at 9.84% APR with a term of three years would result in 36 monthly payments of $321.92. Please find our Rate Beat disclosures here.

Finally, compare those fees carefully. When you meet with a lender, up-front costs will start with a credit report running $50 to $80 and possibly an appraisal, which should cost less than $300. Some lenders use your property-tax valuation, others won't. Often, you can reduce lending fees in a competitive market. And if you're asked for a nonrefundable application fee, beware; reputable lenders try to keep up-front fees low.
Finally, compare those fees carefully. When you meet with a lender, up-front costs will start with a credit report running $50 to $80 and possibly an appraisal, which should cost less than $300. Some lenders use your property-tax valuation, others won't. Often, you can reduce lending fees in a competitive market. And if you're asked for a nonrefundable application fee, beware; reputable lenders try to keep up-front fees low.
B and C loans. What if you have less than A credit or don't fit the usual employment or income mold? B and C loans are a fallback. While many banks offer them, so do credit unions, brokerage houses, and finance companies. You'll also find lenders that push B and C loans for debt consolidation with enticing introductory rates. Beware, though: Total interest and fees tend to be high because of the lenders' added risk. And since B and C loans lack consistent requirements and terms, comparing them is difficult.
The best time to apply for a home improvement loan is when you have a large renovation project you want to tackle. That could be adding another bathroom to your home, roofing your house or installing a pool, or any other major home-related project. This type of loan is a good option if you don’t have a lot of equity in your home to draw from but need or want to make home improvements.
Many people turn to home improvement loans even though saving up and paying cash for home improvements is often the least expensive option. After all, when you pay cash, you don’t have to pay interest. However, sometimes home improvements come in the form of emergency repairs, and paying interest on a loan is less costly than saving up to pay cash while your roof leaks for months and causes mold, rot and damaged ceilings that will cost even more to repair later.

Home improvement projects—whether you hire a pro or DIY—do cost a pretty penny, so most of us have to take out some sort of loan to pay for them. You've probably received "you've been approved for a personal loan!" letters in the mail or have been told you can refinance your mortgage and take money out for whatever you want. As with other major financial decisions, however, it's really worth the time to understand your different choices so you don't screw yourself in the long run. Let's take a look.

Home equity loans are a second mortgage on your home. They're usually a fixed interest rate for the life of the loan, and you get the money in one lump sum. Terms vary, but many home equity loans have you pay back the principle and interest within 15 years with monthly payment plans. This might be the best option if you need a set amount of money for something important and have enough room in your budget to make the payments, of course.
Services provided by the following affiliates of Truist Financial Corporation: Banking products and services, including loans and deposit accounts, are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, and SunTrust Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by SunTrust Investment Services, Inc. and BB&T Securities, LLC, P.J. Robb Variable Corp., and Precept Advisory Group, LLC, which are SEC registered broker-dealers, members FINRALink opens a new window, SIPCLink opens a new window, and a licensed insurance agency where applicable. Investment advisory services are offered by SunTrust Advisory Services, Inc., GFO Advisory Services, LLC, BB&T Securities, LLC, Sterling Capital Management, LLC, and BB&T Institutional Investment Advisors, Inc., each SEC registered investment advisers. BB&T Sterling Advisors, BB&T Investments and BB&T Scott & Stringfellow, are divisions of BB&T Securities, LLC. Mutual fund products are advised by Sterling Capital Management, LLC. Mortgage products and services are offered through SunTrust Mortgage, a tradename for SunTrust Bank now Truist Bank.
To possibly have the quickest impact on your home's resale value, replace overgrown bushes with low, uncluttered plantings. In the backyard, add a simple patio made of pavers, a fire pit or a fountain fashioned out of rocks or pottery. Choose evergreen, perennial plants as the primary elements in your garden. These are low maintenance, and in the winter your home will show better with full bushes instead of twigs. On the other hand, if you live in a warm climate, build an outdoor living space with gravel, pavers, umbrellas and plush patio furniture.

Home equity loans and home equity lines of credit (HELOCs) are popular ways to pay for home improvements because they have long repayment periods, which means the monthly payments are low. They also have low interest rates, as they’re secured by your home, and the interest is tax deductible if you itemize. But there is a small risk of losing your home when you take out this type of loan, because if you default, the lender can foreclose. Also, you take 20 to 30 years to repay your home equity loan or HELOC; it can actually cost you more in interest than a shorter-term loan with a higher interest rate, such as a traditional home improvement loan or a personal loan.
Home loans using home equity as collateral are the most common and offer the biggest loan amounts, according to Greg McBride, senior financial analyst for Bankrate.com. However, “Lenders are looking for homeowners to retain a 15% equity stake after the loan,” McBride said, so you’ll need a fairly large amount of equity in your home just to qualify.
Home equity loans are a second mortgage on your home. They're usually a fixed interest rate for the life of the loan, and you get the money in one lump sum. Terms vary, but many home equity loans have you pay back the principle and interest within 15 years with monthly payment plans. This might be the best option if you need a set amount of money for something important and have enough room in your budget to make the payments, of course.
Disclaimer: Fixed rates from 5.99% APR to 17.67% APR (with AutoPay). Variable rates from 5.74% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of October 15, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.74% APR assumes current 1-month LIBOR rate of 2.05% plus 3.08% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
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