4 Options for a Home Improvement Loan

4 Options for a Home Improvement Loan

There are times when you want some home improvement but do not have sufficient funds. You might want to renovate your old home or you might have just bought a home that needs improvements. Or you may decide that rooms like your bathroom are long overdue for a change of decoration. With that comes the responsibility of having to look for plumbers like those found at Sharp Plumbing & Heating (sharpplumbing.com/service-areas/plumbing-services-in-berlin-ma/) to help install a new shower or any fixtures you feel need updating. You’ll want to make sure that this gets done right the first time so hiring professional help could be essential to your renovation process.

Whatever is the case, you can avail a home improvement loan for this purpose. There are many options, some better than others. For example, you may decide to learn more about the standard home improvement loans that can be provided by somewhere like Tower Loan if you want a quick and efficient loan to resolve your home improvement issues. And if that isn’t what you’re looking for, here are 4 options that you can consider according to your circumstances.

4 Options for a Home Improvement Loan

1. Home Equity and Home Equity Line of Credit (HELOC)

A home equity loan is very similar to a mortgage where you use your property as a collateral and avail a loan. You can have a certain lump sum amount of loan as home equity loan or you can have a line of credit. In home equity line of credit, you have a certain limit and withdraw funds according to your requirement within your credit limit. Interest rates are quite affordable for this type of loan. If this is of interest then it may be worth looking into a Home Line of Credit from somewhere like Atlantic Union Bank as their services have helped many others out with this particular concern.

2. Refinancing

In the case of refinancing, the bank pays your outstanding mortgage and approves a new loan with a bigger amount. You can spend the additional funds on home improvement. The advantages of refinancing include low interest rate and having to deal with only one loan.

3. Federal Housing Authority Loans

These home improvement loans are secured through Federal Housing Authority and offer lower interest rates and easy approvals. You have to meet certain requirements in order to avail these loans. The Department of Housing and Urban Development offers Title I program, and you can get twenty-five thousand dollars or sixty thousand dollars for home improvement depending on the size of your home.

4 Options for a Home Improvement Loan 2

4. Unsecured Loans

These home improvement loans include personal loans from banks and credit unions. These are called unsecured loans because they are not secured by any collateral. Because they involve higher risk for banks, the interest rate is quite higher as compared to secure loans.