Mortgage Underwater? No Equity Home Repair Loan Options
Aug 29, 2009 Mortgages
The housing bubble has burst and because of the crash in home values across the nation there are a lot of people who are now living in houses that have not built up any added value over the past several years. This has put a strain on people who were hoping to use the increased financial value of their homes to perform some much needed home repairs.
In a normal active economy if you bought a home for $150,000 five years ago it might actually be worth $190,000 today. You would then be able to borrow money against that added value from a lending institution and use that money to upgrade your home. That’s the sign of a rising housing market: you could buy a house for a certain value one year and in the next year the value of the home would actually increase by a few percentage points.
Unfortunately many housing prices have actually dropped in the past year or so, which means a lot of people are now paying for homes that are now worth less than what they originally paid. When you owe more cash on a house than what it is worth then you are said to be “underwater” with your mortgage payments. This means they don’t have that extra home value which is known as “equity.”
If you’re looking for a big home remodeling loan then you may want to think about applying for a Title I home improvement loan from an eligible loan partner. There are lots of vendors of these kinds of loans, they offer a low interest rate and you may be eligible to pay it off over a generous 20 years. Just about any one who owns a home can apply for an FHA loan and eligibility is less restrictive than most traditional lending institution loans. You do not have to have equity in your home to apply for a Title I home improvement loan.
Another good way to keep the high price of a home improvement project down is to do at least some of the labor yourself. For most home improvement jobs the highest expense often comes from the amount of manual work involved, so by taking on some of that work yourself, you can really shrink the total cost of the overall project. There are lots of different do-it-yourself home improvement things most people can do around their houses with just a little bit of knowledge and a willingness to work.
As you can guess, big home improvements always end up costing more than the small ones. Most manageable house repairs can become large headaches if they are allowed to go unaddressed for too long. If you have a serious home repair that needs to be done, don’t let your home’s dropping value prevent you from obtaining the money you need to make the repairs.
About the Author:
Want to read about more ways you can finance those home improvements? There are lots of different home improvement financing options available today depending upon your credit score and home value. This and other unique content ” articles are available with free reprint rights.
Tags: "mortgage, equity, home improvement, home improvement loan, loans, money, Mortgages, Title I loan
What To Know About Home Remodeling Loans?
Jul 17, 2009 Mortgages
Most people think about home improvement projects as all the little things you can repair or do around your house to make it more livable. But home improvement projects don’t have to be restricted to small budgets or simply involve a few minutes of work on the weekend.
Today’s home improvements are becoming more costly and many times home owner must take out a loan to cover the project or borrow money from some existing asset. Using borrowed money to upgrade a home is a much cheaper option than buying a new home and moving for most people.
Larger house improvement projects that require financing could including adding an addition to your home, remodeling your home to add more space, upgrading the appointments in a kitchen or bathroom, installing a new furnace or cooling system, replacing a roof or installing siding or simply putting in a new swimming pool.
There are lots of different ways to pay for a large home improvement, but taking out a loan explicitly for the purpose up upgrading your home is always an option that’s worth looking into. Most personal loans can be broken into one of two categories:
Unsecured home remodeling loan: When you get an unsecured loan, it means you basically are getting the loan based on your income and credit score and you are not putting anything up for collateral. Unsecured loans are usually for smaller amounts and often have a greater interest rate due to their increased risk. If you don’t have any equity built up in your home this may be a good option for you.
Secured loan for a home improvement|upgrade|remodeling project: A secured loan is based on an item of value, so it’s less risky to a lending institution. Often a secured home improvement loan is made using the equity, or extra value, your home may already have. Secured loans are often larger loans that have lower interest rates. A home equity loan or home equity line of credit is essentially a secured loan that is often used for home improvements or remodeling projects.
Each borrowing option has some positive and negative aspects and there’s no loan that’s perfect for every situation. There are credit cards, bank loans and even online low rate loan programs now. Some loans are better for smaller home improvement projects while some are much more useful for large home projects. Borrowing money to improve your home will generally raise the value of your home, though the value may not always exceed the amount of money you borrowed initially.
About the Author:
Remember that any upgrades you make to your home should be considered an investment. In some situations you may qualify for tax deductions from your home improvements if they meet the right criteria. These deductions can quickly help you pay back your loan!
Tags: home equity, Home Equity Line Of Credit, Home Equity Loan, home improvement, home improvement financing, home improvement loan, housing, loans, money, Mortgages, Secured Loan, Unsecured Loan
How To Get A Loan For A Home Improvement
Jul 16, 2009 Mortgages
Home improvement projects don’t have to be small jobs you finish on the weekend. With home sales still low, many people are starting to improve the houses they live in, and they’re doing it with major upgrades that require fair amounts of money.
Today’s house improvements are becoming more costly and many times home owner must take out a loan to cover the project or borrow money from some existing asset. Using borrowed money to remodel a home is a much cheaper option than buying a new home and moving for most people.
Any sort of large scale house upgrade will almost definitely require some sort of financing for most people. Upgrading a kitchen can easily cost $18,000 or more, an updated bathroom may cost $12,000 or more and a new roof and siding may be as much as $25,000 or more, depending on the size of the home.
There are lots of different ways to pay for a large house improvement, but taking out a loan explicitly for the purpose up upgrading your home is almost always an option that’s worth looking into. Most personal loans can be broken into one of two categories:
Unsecured home upgrade loan: When you get an unsecured loan, it means you basically are getting the loan based on your income and credit score and you are not putting anything up for collateral. Unsecured loans are usually for smaller amounts and often have a greater interest rate due to their increased risk. If you don’t have any equity built up in your home this may be a good option for you.
Secured home remodeling loans: A loan that has some sort of collateral, such as existing home value, tied to it is called a secured loan. Secured loans usually have smaller rates of interest and are available from many different lending institutions.
The type of loan you pick should be based on the size of your house improvement project, your credit score, your income and the amount of equity or collateral you have readily available. Remember that there are many different types of loans to choose from. You might also want to see if you are approved for an FHA Title 1 home improvement loan program from a local bank. Borrowing money to improve your home will generally raise the value of your home, though the value may not always exceed the amount of money you borrowed initially.
About the Author:
Remember that any improvements you make to your home should be considered an investment. In some situations you may qualify for tax deductions from your home improvements if they meet the right standards and rules. These deductions can quickly help you repay your original loan!
Tags: home equity, Home Equity Line Of Credit, Home Equity Loan, home improvement, home improvement financing, home improvement loan, housing, loans, money, Mortgages, Secured Loan, Unsecured Loan
How To Improve Your Home On A Budget
Apr 16, 2009 Real Estate Properties
Many people are choosing to stay and upgrade their existing homes these days, rather than try to sell their houses and move to another home. In most cases it is much more affordable to improve an existing house instead of moving, but the cost of a large home remodeling project can still be surprisingly expensive.
A lot of home improvement projects are simply too expensive for anyone to pay for all at once without some financial assistance. Most home improvement projects these days can cost thousands of dollars and take weeks, if not months, to complete. Here, then, are some ways you can reduce the initial cost of large home improvement projects and make your home upgrade more affordable:
Break The Project Into Pieces: A lot of home improvement projects are really a bunch of smaller tasks all put together. When you remodel a kitchen you’re really replacing floors, replacing cabinets, replacing applians and so forth. Instead of putting out the full amount of money all at once, why not upgrade one aspect of your kitchen each year so that the cost is spread out over multiple years.
Credit Cards Offered By Hardware Stores: A lot of home improvement stores such as Lowe’s and The Home Depot offer low interest rate credit cards with zero interest or no payments for a limited amount of time. These stores usually offer great interest rates and special deals on materials and even contractor services if you use their cards, so you can save some real money with them over the long run.
Do the Work Yourself: There are a lot of great Do-It-Yourself home improvement books, videos and even blogs out there you can read to see how to do certain jobs. Even if you’re a home improvement amateur you may be able to learn enough from a little bit of research to at least do part of the job yourself and only hire the professionals for the really important part of the job. Anything you can do yourself on your home will ultimately save you money over hiring someone else to do it.
Improving your home is a great way to increase your home’s value, make yourself feel good about where you live and even give you a sense of renewed pride and hope. Paying for a home improvement doesn’t have to be painful if you have a plan and you’re smart with your money. Using some of these money-saving home improvement financing methods will help you turn your house into a dream home in no time!
About the Author:
Home contractor Chris Dawson has worked with a lot of homeowners over the years and knows that even people with bad credit can get a home improvement loan. He writes about home improvements and personal loans for a number of different online publications. This and other unique content ‘home improvement loan’ articles are available with free reprint rights.
Tags: do-it-yourself, finance, home, home equity, home improvement, home improvement loan, home sales, loans, money, Mortgages, Personal Loan, Real Estate, Real Estate Properties, remodeling loan, saving money