Home remodeling loans offer an influx of cash for homeowners with big remodeling plans but pocketbooks that won't quite stretch far enough for costly home improvements. When you own a home, remodeling loans can make it possible to build on an addition, put in skylights, add a pool or make any change you want.  But you should know what to expect before jumping in and signing on the dotted line of a home improvement loan.
Until recently, borrowing money for a new kitchen, second-story addition, or other home improvement meant going to the bank, seeing a loan officer, and hoping for the best. Today, however, you have many more options to help finance home improvements. A mortgage broker, for example, can offer more than 200 different loan programs. And brokers are just one of the many lenders eager to put together a loan that fits your situation—even if your credit history is less than perfect.
Debt Consolidation Information: The amount you save on debt consolidation may vary by loan. Since a home equity line may have a longer term than some of the bills you may be consolidating, you can't realize a savings over the entire term of your new line. In addition, your line may require you to incur premiums for hazard and, if applicable, flood insurance, which would affect your monthly payment reduction. Federally Guaranteed Student Loans shouldn't be consolidated because you'll lose important federal benefits.
A customer can qualify for a rate discount of 0.25% when they (a) provide contracts or bids for home improvements totaling at least $30,000, to be withdrawn subsequent to closing; OR (b) withdraw at least $30,000 from their Chase home equity line of credit at closing. Discount not available for existing HELOC customers with more than three (3) years remaining in the draw period.
Services provided by the following affiliates of Truist Financial Corporation: Banking products and services, including loans and deposit accounts, are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, Member FDIC. Trust and investment management services are provided by SunTrust Bank and Branch Banking and Trust Company, both now Truist Bank, and SunTrust Delaware Trust Company. Securities, brokerage accounts and /or insurance (including annuities) are offered by SunTrust Investment Services, Inc. and BB&T Securities, LLC, P.J. Robb Variable Corp., and Precept Advisory Group, LLC, which are SEC registered broker-dealers, members FINRALink opens a new window, SIPCLink opens a new window, and a licensed insurance agency where applicable. Investment advisory services are offered by SunTrust Advisory Services, Inc., GFO Advisory Services, LLC, BB&T Securities, LLC, Sterling Capital Management, LLC, and BB&T Institutional Investment Advisors, Inc., each SEC registered investment advisers. BB&T Sterling Advisors, BB&T Investments and BB&T Scott & Stringfellow, are divisions of BB&T Securities, LLC. Mutual fund products are advised by Sterling Capital Management, LLC. Mortgage products and services are offered through SunTrust Mortgage, a tradename for SunTrust Bank now Truist Bank.
Chase customers who secure a new Chase home equity line of credit can save 0.25% off the standard variable home equity line of credit rate with qualifying personal deposit accounts including Chase personal checking and savings accounts, CDs, certain Chase Retirement CDs, or certain Chase Retirement Money Market Accounts. Qualifying personal investments include investment and annuity products offered by JPMorgan Chase & Co. or its affiliates and agencies. Balances in Chase Money Purchase Pension and Profit Sharing Plans don't qualify.
To make sure you are getting the best deal, comparison shop with several lenders, including your mortgage servicer. Requesting a pre-approval or applying for several remodeling loans won’t damage your credit—McBride says the credit bureaus lump similar applications into one inquiry – but it will help you to find the lowest interest rate and the best terms.
A “home improvement loan” is usually an unsecured personal loan that is used to pay for home repairs and improvements. An unsecured loan does not require you to put up an asset, such as your house, as collateral. Home improvement loans can range from $1,000 to $100,000, with interest rates from 5.99 percent to around 36 percent if your credit is bad. Personal loans have a fixed interest rate and a fixed monthly payment and are available at traditional banks, credit unions, online lenders and peer-to-peer lenders.
We know from personal experience that a large number of older homes in Northern and Southern California are still in great shape and can be updated, upgraded and expanded to meet the needs of a growing family. It’s a great solution for families that love their neighborhoods and the cost of renovation is usually substantially less than the cost of purchasing a larger home.
To qualify for a home remodeling loan, you will need a good credit score and enough monthly income to comfortably pay for all of your debts, including the monthly loan payment. While qualifying for remodeling loans isn’t as difficult as qualifying for a mortgage, “lenders will be very diligent about verifying debt ratios,” McBride said. So, be prepared to supply a lot of paperwork to prove your financial standing.
After the kitchen, you may want to think about remodeling your existing bathroom. If your house is older, you may be sporting pink, blue or avocado tile or outdated fixtures. Even if your home is newer, styles can change. Invest in neutral-colored tile and give the room some personality with a fresh coat of paint, wall hangings and a new shower curtain. Update lighting fixtures and install a low-flow toilet to save on the water bill. You may even want to add a new vanity and matching mirror.
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