Consider the following before you decide how to finance your home improvement project:
- Talk to lenders about your options.
- Know that lenders are concerned about income, debts, credit history and property value.
- Select the kind of lender with which you are most comfortable.
- Consider a secured loan when you want to borrow more money, get a lower interest rate or reduce taxes.
- Refinance an existing loan if you have enough equity and if the rates are two points lower now than when you initially borrowed the money.
- Use a home equity line of credit that is secured by your home so that your interest is tax deductible.
- Take out a home equity loan to get fixed rates and payments.
- Consider a homeowner loan that is secured by your property Use a value added loan when the improvement you make will have a substantial impact on the market value of your home.
- Use funds from savings only if you won't break the bank.
- Use credit cards only for small projects that you will be able to pay off quickly.
- Do your research before using contractor financing.
- Make your decision only after doing your homework.
-- Tips courtesy of Service Magic
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