We love decorating our houses. And there are phases in our lives when maybe we’ve spent too much time watching Food Food or TLC & thus have built castles in the air of visions of turning our kitchen into a chef’s paradise. Or perhaps our master bath is just one shower away from a disaster. For we really do love Italian tiles on our bathrooms. And if so, then cheers, you’re not alone. Recently, the Joint Center of Housing Studies for Harvard University has investigated & reported that the home improvement industry should continue post record-level spending in 2016.For many people, this means borrowing money to pay for the well planned home improvements & home decorating schemes. Now, one is ought to face a tough & difficult & perhaps hypothetical question. So, which home improvement loan is right for you? Many homeowners & homemakers look to tap the equity in their homes. But home equity loans or home equity lines of credit may not be possible or very practical for some borrowers. In that case, one should consider using a personal loan.
While it is known that one can use a personal loan for a variety of reasons, there are a few reasons why a personal loan can have advantages over home equity loans when it comes to a renovation loan, to be specific. The application process for a personal loan is usually quite simple and quite straightforward. Your own financial situation-for example, your credit history & earning power; this is often the main deciding factor for whether or not you will be able to get a loan, for how much, & if so, at what interest rate.Some personal loans even boast of having no origination fees. However, home equity loans or home improvement loans on the other hand, are akin to applying for a mortgage (in fact, home equity loans are sometimes called second mortgages). How much you can borrow depends on several factors, including the value of your home. Because you can only borrow against the equity you already have (i.e. the difference between your home’s value & your mortgage), you may have to arrange – & pay for – a home appraisal.
