Home Improvement Financing Site

When most people think of home improvement what home improvement is they think of all the little things around the house that they can improve or fix on their own without having to borrow money from a bank.  But many home improvement projects require some sort of financing because they are large scale projects that require a large sum of money all at once.  These larger home improvement projects require some sort of bank or lender issued home improvement money.

Larger home improvement projects that require financing could including adding an addition to your home, remodeling your home, upgrading the appliances and kitchen or bathroom, installing a new central air conditioner or furnace, replacing a roof or installing siding or simply putting in a new swimming pool.

There are two general types of home improvement financing.  There is an unsecured home improvement loan and a secured home improvement loan.  When you are first looking at home financing you will have decide if you want a secured or unsecured loan.  The differences are many, but here’s a general breakdown:

Unsecured Home Improvement Financing: An unsecured loan of any type is a loan you are taking out without any sort of collateral.  Only your credit rating and income level are really considered for loan of this type.  Home improvement credit cards fall into the unsecured home improvement financing category.  Unsecured home improvement loans are meant to be paid back over a short period of time and will generally have a higher interest rate.  The advantage to unsecured home improvement financing is you don’t need to have a home that has a lot of equity or “value above the purchasing price” to get this type of home improvement loan.

Secured Home Improvement Financing: A secured loan of any type is a loan which is backed with collateral, or something to trade, in exchange for the loan.  For home improvement financing purposes that is almost always your home itself and any equity or extra value the home may now have.  If you purchased a home for $100,000 but it will now easily sell for $150,000 then you have $50,000 in equity or value that you can use to finance home improvement projects.  Secured home improvement loans have a lower interest rate and usually have a longer payoff period.

Don’t despair if you have bad credit and wish to finance a home improvement project.  Even people with bad credit can get a home improvement loan if they follow a few common sense steps and are willing to pay a higher interest rate or borrow a little less money than they might normally want to borrow.

If you’re serious about borrowing some money for those needed home improvements, then you should definitely consider using a free no-obligation home improvement loan calculator to find out exactly what kind of loan terms you may qualify for. The process doesn’t cost you any more than a few minutes of your time and it helps you get an idea of how big of a home project or remodeling you can afford.

A lot of sites try to push the idea of getting a home improvement loan for just about any home improvement you have planned or any financial situation you’re in.  Financial websites, banks and other lenders with a vested interest in making money off your loan.  There are times, however, when financing a home improvement project is simply not a good idea.  You need to make sure you don’t fall into one of these traps:

Small Home Improvement Project: A small home improvement project may not actually end up costing you all that much.  Simple things like having your home painted or replacing a screen door or even some very basic landscaping may only cost one or two hundred dollars.  While that is still an expense worth considering, it probably isn’t enough to really warrant the time and energy to be spent on getting a personal loan or even a home improvement credit card to pay for.  You may be able to work out a schedule payment plan with the contractor doing the work or if you’re doing it yourself you may be able to buy the materials over time, softening the financial impact on your wallet. There are lots of online resources for Do-It-Yourself (DIY) home improvement projects.

You Have the Cash to Pay for Your Home Improvement Project: If the home improvement project you have in mind is fairly expensive but you happen to have the money on hand or in savings then you may want to consider skipping the home improvement project financing and simply paying for the project out of your cash reserves.  Remember that any sort of financing or loan you get for a home improvement actually increases the cost of your project with application fees and interest collected over time.

Your Monthly Home Improvement Loan Payments Are Too Expensive: Let’s face it, if you can’t afford the monthly payments on your home improvement loan then it probably isn’t worth going for financing.  You need to consider all your monthly expenses and try to figure out if you have enough money at the end of a typical month to make regular payments on the loan you took out.  It is important that you consider several different types of loans because each loan will have different advantages, disadvantages and monthly payment amounts.  You can use a free, no-obligation home improvement loan calculator to figure out exactly how much your payments might be and to see different financing scenarios.

You’re Selling Your House or Moving Soon: If you plan on selling your house or you’ve already sold your house then there is usually not a need to spend a large amount of money on home improvement projects unless you think the home improvement will help sell your house.  A lot of people take out small home improvement loans to fix up their home just enough to help it sell in this tough housing market.  The idea of using popular home improvements to sell your home is a not a new one.

Obviously home improvement loans can help you maintain your home’s present value and even increase the current value depending upon the improvements you have planned.  If the project you have planned is a larger project, if you don’t have the money readily available but you know you can definitely afford the monthly payments then a home improvement loan may be your key to making your home a much more comfortable place for you and your family to live!

If you’ve been putting off that big home improvement project because you just didn’t have the money to pay for it then you may want to start considering your home improvement financing options now.  There are several driving market forces which means it may be easier than ever for you to borrow money, especially for home improvement projects.

Slow House Sales Are Hurting Home Contractors: I don’t need to tell you that the housing market is in a slump, which means home sales and new home construction are way down.  This means that contractors aren’t working as much and can’t charge outrageous prices anymore due to the simple law of supply and demand.   Many contractors are beginning to offer their own home improvement project financing.  When home prices gown down then home improvement prices also go down because more contractors have to competitively bid against one another for less jobs.  This is good news if you have a big home improvement job planned because it means you can solicit multiple bids and get a smaller home improvement loan than you may have once needed.

Equity For Home Improvements is Dropping: Many people have homes whose value has actually fallen over the last six months or so, which means people are no longer taking equity out of their home and spending it on cars and boats and other luxuries quite as often.  However, many people do still have lots of equity left over from the housing bubble and home improvement loan lenders may more easily offer home improvement financing on projects that are proven to increase home values over time.

Fall Is A Slow Time For Home Improvement Projects and Financing: Each year home improvement contractors get ready for the slump of projects in the fall.  Kids go back to school, summer is over an the holidays are right around the corner.  Many home improvement stores and contractors start lowering prices to sell off inventory and many also start offering special deals on all sorts of home improvement financing offers.

Home Improvement Stores are Are Offering Zero Percent Financing: Lowe’s and The Home Depot have had lackluster sales, so they are both offering zero percent interest home improvement credit cards.  Lowe’s has a zero percent credit card offer that is for a limited time, while The Home Depot’s credit card always has a zero percent option for six months on purchases over a certain amount.

All these different factors are making home improvement loans and financing much easier to come by for the average American.  As the economy begins to pick up and the housing market begins to strengthen then it will begin to get much more difficult to get great rates like zero percent on home improvement loans.