Home Improvement Loan

Remodeling areas of your home that are beginning to look dated is always a good idea but money is often the issue that needs to be addressed. unless you have a large sum of money in savings you will need to arrange a home improvement loan. If you want a first rate home improvement job carried out with a guarantee then you will need to use professional tradesmen who should also speed the work up a great deal.

Almost all homeowners are able to arrange a home improvement loan but some may decide voluntarily, or be forced, to have the loan secured on their home or other valuable possession. Fortunately loans that do not require the home itself as equity are even available to brand new homeowners. This type of zero equity financing usually has a fixed interest rate of up to 15 years.

The eligibility for finance without equity can depend on the combined household income, which should not exceed the county limit where the property is located. Certain facts are researched by the lenders; like the type of property and reasons for the loan but essentially, this type of loan is easy to arrange with only a small amount of documentation to complete.

For people with small mortgages and high value homes, a home improvement loan that is secured is often a preferred method to finance remodeling costs. This type of loan is much quicker to organize and because the house is being used to secure the loan, it benefits from better terms and lower interest rates.

How much you can borrow on a secured loan depends on the equity in your home. The lender will work with you in determining the value of your home based on its current value, amount of outstanding mortgage, and other debts that you currently have.

The next stage is to factor in all this information before a final figure the lender is prepared to agree upon is put before the homeowner. Usually, finance companies will lend you a percentage of the assessed value of your house but some lenders can lend as high as 125 percent of your home’s equity.