home improvement loans

Financing any additional work on your home from a loft conversion to remodeling the master bedroom is going to be expensive; a home improvement loan might just be what you need to renovate or restyle your property. Home improvements can be costly, involving contractors, supplies, and tradesmen such as carpenters, plumbers, roofers, and electricians.

Bear in mind that home improvement loans are just for that and as such two options are available; secured loans and those that do not require equity. When a homeowner has only just purchase the home, they are still able to arrange a loan, subject to their status of course. Fortunately for the homeowner, a non-equity based financing arrangement is available with a fifteen year repayment term if required.

There are, however county limits on how much money can be borrowed when it is for no equity finance and a lower limit imposed by the lenders which takes into account the joint income of both owners. Whilst the lenders do not hand over the money without making some checks first about the property and the applicant, these are just to provide some security for the lender as these loans are processed quite quickly.

For people with small mortgages and high value homes, a home improvement loan that is secured is often a preferred method to finance remodeling costs. There are benefits to arranging a secured loan though as they generally have a lower rate of interest so reducing the monthly payments and although they are relatively hassle free, they are not another mortgage on the property.

The lender will only provide funds for a secured loan based on the current equity available in your property. Although the value of your home is required, it will also take into account how much you owe both on the house and personally.

The next stage is to factor in all this information before a final figure the lender is prepared to agree upon is put before the homeowner. Usually, finance companies will lend you a percentage of the assessed value of your house but some lenders can lend as high as 125 percent of your home's equity.

When you arrange a loan this way, the lender has a claim on your home should you fail to meet payments, so only borrow judiciously and consider your ability to pay it back. Do not over-extend yourself to remodel your home when arranging your home improvement loan as often necessary maintenance and decoration will be enough to give it that all important face lift.