Whether you have decided to make a couple of modest upgrades or you are in search of an extravagant new addition to your home, when you do not have money saved up for such a project, you may want to consider one of the 2016 and 2017 home improvement loans available. A number of real-estate professionals and experts agree on the fact that a wisely chosen upgrade can result in an increase in the value of a home, but it is vitally important to know if you are able to afford the updates you have in mind.
If you happen to have equity associated with your home, it becomes somewhat straightforward to obtain the funds that you need. When utilizing equity as collateral it translates into obtaining funds at a low APR, and with this option you are not going to be worried about putting your home on-the-line.
Many are Underwater
However, since the year 2008, the majority of homeowners still find themselves underwater in regards to their homes. Many of these homeowners are in search of conducting upgrades in order to migrate back into a positive type of equity territory. Credit loans associated with 2016 home improvement loans from companies such as LightStream and Prosper now provide unsecured options that will not require the equity of a home for collateral. Instead, many of these loan options are based on your credit history and personal income.
However you decide to finance these home improvements, it is important to know about the advantages and the disadvantages for these options. Below is a suggestion on the best types of home-equity loans and the best types of home-improvement loans:
•Home-equity loans: Bank of America and U.S Bank
•Home-improvement loans: LightStream and Prosper
The U.S Bank
Ahead of its competitors mainly due to the lowered APRs and the transparency on its site. Once you receive your rate quotes, you can easily read up on the important disclosures related to the fees and rates without having to click on “small-print” links or having to search on additional pages.
LightStream
It is very difficult to find other loan providers that offer APRs as low as the ones offered by LightStream, which is a division of SunTrust Bank. For the purposes of home-improvements, LightStreams APR’s range between 4.99% and 9.24%, which is extremely low when related to unsecured loans. This is not very far off when compared to traditional types of home-equity loans, either.
In addition, LightStream offers loans that can reach up to $100,000, which is a very high limit when considering unsecured loans. This is potentially very useful when it comes to specific types of home-improvement purposes. Over and above these advantages there are also no fees involved other than the interest associated with the loan.
The major downside of these loans is that you will be required to meet the incredibly high-standards set in place in order to qualify.
This criteria includes a history related to responsible saving, a substantial income, and an excellent credit score. In addition, this loan will only be able to be used for home-improvements, whereas many other lenders will allow for an unsecured loan to be used for other purposes.