So you want to add a room to your home, add a pool or just
update your kitchen?
As a homeowner, youre able to use the growing equity in your home to
finance home improvement projects. With a home improvement loan (better known
as a home equity loan), you can convert the equity in your home to cash for one
or multiple home improvement projects. And in some cases actually increase the
value of your home.
The three most popular home improvement loans are:
equity line of credit:
If your not sure of how much your remodeling
project will cost or if the project may last for many months, then this type of
loan will work for you because it allows you to draw from a reusable source of
Home equity loan:
know how much your project will cost or want to borrow only a specific amount
of cash, then this type loan is for you. With this loan type, you will be limited
to the amount you borrow. So if the are any unforeseen problems that need to be
addressed during your remodeling project, the cost for that will come out of your
Home improvement loan:
So your remodeling, but you don't have enough equity in your home to cover the
costs. So now what? Well, a home improvement loan may be your answer. This works
a bit differently than the above two loan types. This loan allows you to borrow
against what equity you have built-up and borrow against the future value of the
"qualified" home improvements.
home improvements are:
applying for any type of home improvement you must have a firm contractors
bid as evidence of their qualifying home improvements' value. If your still not
sure what type of loan you should apply for, then answer the following questions:
In-ground pool or spa
loan type is best for me?
you know the project's exact cost?|| ||
the project take a known amount of time?|| ||
you borrow only a specific amount?|| ||
don't expect any unforeseen problems with your project?||
have out-of-pocket cash to put towards the project?||
have enough equity in your home to fund the project?||
then check out a home equity loan.If answered mostly"No""Unsure"After filling out our on-line form,
a lender in your area will contact you directly.
get your FREE - NO HASSLE - NO OBLIGATION loan quote TODAY!
to earn equity:
what if you decide you're staying put. You thought about moving, but now you realize
that improving your present home is a better option. In this case you'll need
to understand how you can earn more equity on your home. Because the more equity
you have in your home, the larger amount you can borrow to complete your remodeling
needs and desires.
With any mortgage, once you've paid on your loan this
paid amount will be the equity you've built up on your home. It's the current
value of your property less the amount of the liens secured against it. Let's
say that you own a home that is worth $100,000. You have a mortgage with a remaining
loan balance of $60,000 your equity in the property is $40,000.
Appreciation is the increase in the value of your
home. For example: You bought your first home for $100,000 in 1995 with a 10%
down payment of $10,000, and a mortgage for $90,000. By 1999, your property had
doubled in value to $200,000. This gives you an equity of $100,000 plus the amount
of all payments made within these years.
ways to earn equity:
extra principal payments to decrease your mortgage.
use of a 15 year mortgage loan will build equity faster than a 30 year loan. However,
the monthly payments are higher.
bi-weekly payments on a 30-year mortgage. These loans enable you to build equity
faster so the loan is paid off in about 20 years.