With a low home improvement loan rate available, now's the perfect time to get started on those remodeling projects you've been putting off. However, while you're renovating your home, be careful not to add things that would price your home out of the range of your neighborhood. For example, if you own a bungalow in a neighborhood where sale prices don't top $125,000, reconsider adding a master suite fit for a mansion. You may not recoup that investment when buyers can get very similar homes on the same street for less. Even in a neighborhood where homes sell for $1 million, adding exotic hardwood floors or marble drives and walkways could still push your home's price higher than the average, making it harder for you to sell someday.
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There are several types of loans that can be used for house remodeling. Many homeowners take out a home equity loan or home equity line of credit (HELOC) for that purpose. The home is collateral for the loan. Because of this, rates are typically lower. One could even use credit cards for home improvements, but the cost likely would be prohibitive. Each loan has advantages and disadvantages. 

The Chase Home Equity Line of Credit features variable rates based on the Prime Rate (as published in The Wall Street Journal), which as of 12/20/2019, range from 5.00% APR to 7.64% APR for line amounts of $50,000 to $99,999, from 5.00% APR to 6.89% APR for line amounts of $100,000 to $149,999, from 5.00% APR to 6.89% APR for line amounts of $150,000 to $249,999, and from 5.00% APR to 6.89% APR for line amounts of $250,000 to $500,000. Rates vary depending upon credit line amount, lien position, and collateral location; please inquire about available rates in your area, and about rates for line amounts less than $50,000.
Interest rates. The less interest you pay, the more loan you can afford. An adjustable-rate mortgage (ARM) is one way to lower that rate, at least temporarily. Because lenders aren't locked into a fixed rate for 30 years, ARMs start off with much lower rates. But the rates can change every 6, 12, or 24 months thereafter. Most have yearly caps on increases and a ceiling on how high the rate climbs. But if rates climb quickly, so will your payments.
The most straightforward way to finance a remodeling project is with a home improvement loan, which can be a conventional loan or an FHA-backed 203(k) loan, which is intended for homeowners who want to spruce up their homes. These loans are packaged separate from your mortgage, and offer different rates and terms than your mortgage. You’ll need to be approved separately, so your credit score and current debt will greatly impact your ability to secure a loan.
With a low home improvement loan rate available, now's the perfect time to get started on those remodeling projects you've been putting off. However, while you're renovating your home, be careful not to add things that would price your home out of the range of your neighborhood. For example, if you own a bungalow in a neighborhood where sale prices don't top $125,000, reconsider adding a master suite fit for a mansion. You may not recoup that investment when buyers can get very similar homes on the same street for less. Even in a neighborhood where homes sell for $1 million, adding exotic hardwood floors or marble drives and walkways could still push your home's price higher than the average, making it harder for you to sell someday.
There are several types of loans that can be used for house remodeling. Many homeowners take out a home equity loan or home equity line of credit (HELOC) for that purpose. The home is collateral for the loan. Because of this, rates are typically lower. One could even use credit cards for home improvements, but the cost likely would be prohibitive. Each loan has advantages and disadvantages.
For financing the loan the home is used as equity. Usually, value of a home increases on the completion of the home improvements. This can actually be profitable. With proper repayment of the home improvement loan it is profitable. Real estate values are always on the rise. Before the home improvement loan is acquired it is absolutely necessary not to tamper the existing house in any way. A long-term plan is advisable.
The best time to apply for a home improvement loan is when you have a large renovation project you want to tackle. That could be adding another bathroom to your home, roofing your house or installing a pool, or any other major home-related project. This type of loan is a good option if you don’t have a lot of equity in your home to draw from but need or want to make home improvements.
Loan shopping often starts with mainstream mortgages from banks, credit unions, and brokers. Like all mortgages, they use your home as collateral and the interest on them is deductible. Unlike some, however, these loans are insured by the Federal Housing Administration (FHA) or Veterans Administration (VA), or bought from your lender by Fannie Mae and Freddie Mac, two corporations set up by Congress for that purpose. Referred to as A loans from A lenders, they have the lowest interest. The catch: You need A credit to get them. Because you probably have a mortgage on your home, any home improvement mortgage really is a second mortgage. That might sound ominous, but a second mortgage probably costs less than refinancing if the rate on your existing one is low. Find out by averaging the rates for the first and second mortgages. If the result is lower than current rates, a second mortgage is cheaper. When should you refinance? If your home has appreciated considerably and you can refinance with a lower-interest, 15-year loan. Or, if the rate available on a refinance is less than the average of your first mortgage and a second one. If you're not refinancing, consider these loan types:
Finally, compare those fees carefully. When you meet with a lender, up-front costs will start with a credit report running $50 to $80 and possibly an appraisal, which should cost less than $300. Some lenders use your property-tax valuation, others won't. Often, you can reduce lending fees in a competitive market. And if you're asked for a nonrefundable application fee, beware; reputable lenders try to keep up-front fees low.
Before applying, be sure to check your credit history for inaccuracies, and if you find any, dispute them. You’ll want to make sure your credit is in tip top shape so you can get the best rate from lenders. If your credit score is subprime, consider a bad credit loan instead. It’s also important to get a few estimates prior to applying for a loan so you have an idea of how much money you need to get the job done.
With a low home improvement loan rate available, now's the perfect time to get started on those remodeling projects you've been putting off. However, while you're renovating your home, be careful not to add things that would price your home out of the range of your neighborhood. For example, if you own a bungalow in a neighborhood where sale prices don't top $125,000, reconsider adding a master suite fit for a mansion. You may not recoup that investment when buyers can get very similar homes on the same street for less. Even in a neighborhood where homes sell for $1 million, adding exotic hardwood floors or marble drives and walkways could still push your home's price higher than the average, making it harder for you to sell someday.
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Our singular focus at HomeConstructionLoans.com and Arroyo Consulting Group is to help individuals and families turn their housing dreams into reality.  Whether that means building a new home from the ground up, a complete tear down and rebuild or remodeling and expanding your current residence, the pros at HomeConstructionLoans.com and Arroyo Consulting Group are there to help make your project a smashing success.
Finally, compare those fees carefully. When you meet with a lender, up-front costs will start with a credit report running $50 to $80 and possibly an appraisal, which should cost less than $300. Some lenders use your property-tax valuation, others won't. Often, you can reduce lending fees in a competitive market. And if you're asked for a nonrefundable application fee, beware; reputable lenders try to keep up-front fees low.

* The actual loan amount, term, and APR amount of loan that a customer qualifies for may vary based on credit determination and state law. Minimum loan amounts vary by state. **Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. Avant branded credit products are issued by WebBank, member FDIC.
Whether you want to give your kitchen a fresh look, build the deck you’ve wanted, or want to make a few bigger home repairs, one of the decisions you’ll face is how to pay for your home improvement. Sure, you could use your credit cards or maybe take advantage of in-store financing, but one of the most convenient ways to pay for larger projects is with a home improvement loan.

Getting personal. Houses aren't the only loan collateral. Stocks, bonds, certificates of deposit, a savings account, and even a pension or retirement account can also help you get a viable personal loan from many brokerages and banks. Although the interest isn't tax-deductible, the rate can be low enough to make these loans enticing. You also save the usual title, appraisal, and other closing costs of a mortgage.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636.

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Only the most creditworthy applicants qualify for the lowest rates and largest loans amounts. Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.


Sooner or later, you’ll decide it’s time to make some renovations to your home. Whether you put in the elbow grease and do it yourself or hire a contractor to cover the dirty work, any remodeling venture can be pricey. Finding the best way to finance a home improvement project can be tricky, and the ideal choice varies according to your financial situation.
With a low home improvement loan rate available, now's the perfect time to get started on those remodeling projects you've been putting off. However, while you're renovating your home, be careful not to add things that would price your home out of the range of your neighborhood. For example, if you own a bungalow in a neighborhood where sale prices don't top $125,000, reconsider adding a master suite fit for a mansion. You may not recoup that investment when buyers can get very similar homes on the same street for less. Even in a neighborhood where homes sell for $1 million, adding exotic hardwood floors or marble drives and walkways could still push your home's price higher than the average, making it harder for you to sell someday.
Home-equity lines of credit. These mortgages work kind of like credit cards: Lenders give you a ceiling to which you can borrow; then they charge interest on only the amount used. You can draw funds when you need them — a plus if your project spans many months. Some programs have a minimum withdrawal, while others have checkbook or credit-card access with no minimum. There are no closing costs. Interest rates are adjustable, with most tied to the prime rate. Most programs require repayment after 8 to 10 years. Banks, credit unions, brokerage houses, and finance companies all market these loans aggressively. Credit lines, fees, and interest rates vary widely, so shop carefully. Watch out for lenders that suck you in with a low initial rate, then jack it up. Find out how high the rate rises and how it's figured. And be sure to compare the total annual percentage rate (APR) and the closing costs separately. This differs from other mortgages, where costs, such as appraisal, origination, and title fees, are figured into a bottom-line APR for comparison.
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