The Best Home Remodeling Loans
It’s time to have your home remodeled. The question is, how do you afford a remodeling project when you have other responsibilities and expenses in your life? Even if you want to renovate a section of your home to freshen up the property or you feel that you need to renovate because of damage, time and money may be a barrier for you.
However, did you know there are home remodeling loans available for people who need help affording their home improvement plan? With a loan, you don’t need to worry about paying for your renovations all at once — you can do it over the course of time with a payment plan.
How Do Home Improvement Plans Work?
Overall, home improvement plans work just like any other type of loan. But there are a couple of different kinds of home improvement loans that you can use. For instance, you can take out a home equity loan, which acts just like a mortgage. Home equity loans typically allow you to take out more money — but if you fail to repay it, you risk home foreclosure.
Personal loans may not let you take out as much money and they tend to have higher interest rates. However, they do take less time to pay off and they are not tied to your home, so you won’t have to worry about losing the house if you run into financial challenges later.
Best Loans for Home Improvement
Once you know the difference between the types of loans, it can save you a great deal of time and uncertainty in finding the best loans available. These are five of the best home renovation loans you can get in 2019.
- Wells Fargo: One of the largest and most widely known banks on this list, Wells Fargo offers personal home remodeling loans anywhere from $3,000 all the way up to $100,000. So no matter the extent of your home improvement project, you can rest assured that Wells Fargo can give you the funds you need. APR starts relatively low at just 7.49 percent, and you will receive your funds as soon as the day after the bank approves your loan.
- LightStream: LightStream is a division of SunTrust Bank that, like Wells Fargo, offers up to $100,000 in loans which you can repay in under seven years. Although you do need to have exceptional credit and financial security to be approved, the advantages of this loan include low APR and no additional fees. This is currently one of the most trustworthy unsecured home remodeling loans you can apply for.
- Bank of America: Bank of America is a home equity loan lender that offers funds of up to $5,000,000 to people invested in large remodeling projects. Although it does have an origination fee and requires you to have a credit of at least 620 to apply, it’s hard to beat APR rates as small as 3.7 percent. Another factor that sets it apart from other lenders on this list is that you can pay off your loan over the course of a 30-year plan as opposed to just a few years. Because it has tens of millions of customers, it’s safe to say that you’ll likely be in safe hands with Bank of America.
- FreedomPlus: Unlike the above entries, FreedomPlus may require you to pay an origination fee of up to five percent. The advantage of this loan is that it offers APR rates as low as 4.99 percent, as well as same-day approval. A $40,000 or less FreedomPlus loan is perfect for smaller home improvement projects and often allows lower APR rates for cosigners. If you’re looking for a lender you can trust, FreedomPlus is well-known for having excellent customer service.
- Avant: With this lender, you can take out a personal loan between $2,000 and $35,000, meaning it’s another great option for small projects. The main draw of Avant as a lender is that it accepts borrowers with lower credit scores — unlike banks such as Marcus and Wells Fargo, Avant approves people with credit scores as low as 580. Although the APR rate starts a little higher at almost 10 percent, Avant moves through its approval process quickly and offers reliable and accessible customer services.
These are the best home improvement loans that can get you started on your plan to remodel your house. The one that you decide to trust with your loan security depends mainly on your personal needs and preferences. If you’re ready to start creating your dream home, visit our website to schedule a free consultation.