The advent of online lending portals has made it easy for borrowers without collateral to get an unsecured personal loan from both national and local lenders. The rates for this type of debt are significantly higher than for home equity debt; on Bankrate, average APRs for personal loans range from a low of 10.3 percent for someone with excellent credit—a FICO cedit score of 720 and higher—to 32 percent for someone with poor credit.
It's been a few years since I painted anything in anger, but back when I did, there was a trick I'd use when protecting carpet. Round the edge of the carpet, right up against the baseboard, I'd run a 1 1/2 or 2 painter's tape, and let the tape stick slightly to the board. Then I'd go round with the broadest taping knife I had, and tuck the tape down hard. That left the carpet edge protected and rounded over and the tape was now creating a line along the baseboard *below* the level of the carpet. Then I'd sheet up as usual.That made it super easy to paint the baseboard, the bottom edge didn't need cutting in! Just work the pain in there! If the bottom edge was a little messy and uneven, who cared? Once the paint was thoroughly dry, the tape was lifted (carefully, to not pull the carpet off the gripper) and the carpet would bounce up and hide the bottom edge of the paint. A perfect look, quicker and safer than trying to cut in along a fuzzy carpet edge.
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.
To qualify for a home remodeling loan, you will need a good credit score and enough monthly income to comfortably pay for all of your debts, including the monthly loan payment. While qualifying for remodeling loans isn’t as difficult as qualifying for a mortgage, “lenders will be very diligent about verifying debt ratios,” McBride said. So, be prepared to supply a lot of paperwork to prove your financial standing.
Home improvement becomes necessary after few years. To update already existing home money is necessary which can be acquired through home improvement loans. General repairs, repainting, building a swimming pool or a deck, enlarging the existing area of the house or anything similar is done through home improvement loans easily. Home improvements also increase the value of the home. Sometimes though, over improvement is risky. It is difficult to rent a house that is more expensive than other houses in the neighborhood. Mainstream homebuyers do not go for very grand and expensive tastes. So these things have to be considered seriously.
You may be able to arrange an interest-free loan through your contractor as well. However, if you're unable to pay off an interest-free loan before the term expires, you’ll probably owe interest backdated to the day you signed the agreement. In this arrangement, make sure you don’t lose the right to withhold payments if the contractor's work isn't done to your satisfaction, if that was a term of your contract.
A home improvement loan calculator can help you budget your project and determine potential loan payments. If you are thinking of updating your home, you may be interested to know that there are home improvement loan calculators online to help a homeowner determine what the payments will roughly be for a particular amount taken out. With a home improvement loan calculator, a potential homeowner who is interested in updating their home will be able to see how much home improvement loan rates will be based on the interest. These home improvement loan calculators are very easy to use. They will help to figure out an approximate cost based on the home improvement loan rates that are offered by the lender. Simply enter the loan amount, the time frame, interest rate, and the first due date, click submit and the online calculator will do the rest of the work for you. These calculators make it quite nice to compare how much you can save when you accelerate your payments and pay the loan down faster than the original schedule. Using this calculator is a smart option for homeowners who wish to see what options they really have, and to see what they can truly afford.
If you're looking to sell your home in the near future, you may want to consider re-doing the landscaping, repaving the driveway or repairing cement patios to boost your curb appeal. Whether you do the work yourself or hire a landscaper, a home equity loan can help you cover the costs. After all, investing in the labor, cement, pavers, plants, irrigation, topsoil, mulch and removal of your old landscaping can add up fast.
Whether you hire a contractor or take on the work yourself, begin with an accurate estimate of what the project will cost. Lenders will insist on a specific figure before they work with you. If you're hiring a contractor, start with a firm bid, broken down into labor and materials. Then add on 10 percent for surprises. On work you'll do yourself, compile a detailed materials list with quantities, costs, and an accurate total. Include permit fees and equipment rental. Then add a cushion of 20 to 30 percent to be safe. Once you know how much you need to finance your home improvement project, how much will you get? Despite the promises and hype lenders make in their ads and promotional materials, how much you can borrow hinges on your credit rating, the loan-to-value ratio, and your income. These factors also help determine the interest rate, the length of the loan, and whether you'll pay points. Your credit rating. The best rates and terms go to homeowners with an A rating—no late payments in the last 12 months and no maxed-out credit cards. One or two late payments or overdrawn credit cards probably won't knock you out of the game, but you might end up with a higher interest rate and a smaller loan.
After the kitchen, you may want to think about remodeling your existing bathroom. If your house is older, you may be sporting pink, blue or avocado tile or outdated fixtures. Even if your home is newer, styles can change. Invest in neutral-colored tile and give the room some personality with a fresh coat of paint, wall hangings and a new shower curtain. Update lighting fixtures and install a low-flow toilet to save on the water bill. You may even want to add a new vanity and matching mirror.
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At LightStream, we care about the environment and, more importantly, we try to do something about it. For one, we have created a virtually paperless consumer loan experience at LightStream. By eliminating paper almost entirely from the LightStream loan process, we not only save our natural resources but we save on expenses as well, better enabling us to offer you highly competitive interest rates.
A credit card can be a better option for borrowing smaller amounts of money for your home improvements with lower interest rates than a personal loan. Credit cards can offer 0% interest rates for a set period of time on your larger purchases, which might include a new kitchen or bathroom suite. A credit card works best if you can pay it off quickly.
Your credit score: It’s smart to know what are your chances of qualifying before you apply for a loan. Get a free copy of your credit report from each of the major credit-reporting bureaus: Equifax, TransUnion and Experian. You are entitled to one free report a year from each bureau. The most favorable rates go to borrowers with the best credit scores. Every lender you apply with will check your credit score and credit history.
1 Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
To make sure you are getting the best deal, comparison shop with several lenders, including your mortgage servicer. Requesting a pre-approval or applying for several remodeling loans won’t damage your credit—McBride says the credit bureaus lump similar applications into one inquiry – but it will help you to find the lowest interest rate and the best terms.
With a low home improvement loan rate available, now's the perfect time to get started on those remodeling projects you've been putting off. However, while you're renovating your home, be careful not to add things that would price your home out of the range of your neighborhood. For example, if you own a bungalow in a neighborhood where sale prices don't top $125,000, reconsider adding a master suite fit for a mansion. You may not recoup that investment when buyers can get very similar homes on the same street for less. Even in a neighborhood where homes sell for $1 million, adding exotic hardwood floors or marble drives and walkways could still push your home's price higher than the average, making it harder for you to sell someday.
A home equity loan is another way to tap your equity without refinancing. Instead of getting a line of credit, as you would with a HELOC, you’d receive a lump sum of money. A home equity loan could make sense if you don’t want to refinance your first mortgage — if it has a very low interest rate, for example. But the interest rate would probably be higher with a second mortgage like a home equity loan than with a cash-out refinance.
A home equity/Line of credit, a closed end 2nd mortgage, an after-value loan or a host of other equity products are the options available for home improvement loans. What are the improvements to be made, the period it will take to complete and the amount of equity available are the important considerations to be made before going for a home improvement loan.
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.