KingofHowTo.com Instructionals | News | Advice | Reviews

Worth of Home Improvement Loan Defined by How It's Used

By Nathaniel Hutchinson
KingofHowTo.com Business and Financial Expert

12/01/2011


Homeowners can leverage their property equity to acquire funding for repairs and alterations to their houses; however, the ultimate worth of a home improvement loan is defined by how the borrower chooses to use the money. Before you contact a lender, learn which types of improvements make your home more valuable and which do not.

Should I get a home improvement loan?

If you need money to pay for pressing needs you simply cannot afford, this sort of home loan might make a lot of sense. For instance, if you need a new roof, you may not be able to afford the repair expense. New roofing will increase the value of the home and prevent additional damage which could devalue the property. Energy-efficient storm windows and doors can also add value, as can new kitchen countertops and hardwood floors.

On the other hand, some home improvements add hardly any value to a home. If you're planning to acquire a loan to pay for elaborate landscaping or a new swimming pool, you may be making a poor choice; because, these types of additions don't add much value to a home.

Other options

Instead of getting an expensive home improvement loan to pay for things that donít increase your property's worth, consider adding aesthetic beauty by employing some do-it-yourself strategies. If you were hoping to replace your ugly, aging swimming pool, consider refurbishing it by applying Deck Kote pool paint and/or a fresh coat of pool railing paint. You can also drastically enhance the appearance of your home by replacing the lighting fixtures in the bathroom and kitchen.

Making a decision

If you're dead set on getting a loan to fund your home improvements, be sure to work with a Title I-approved lender. These lenders provide loans that are insured by the U.S. Department of Housing and Urban Development. This backing allows them to provide lower interest rates that make loans more affordable and easier to get.



Related Kingofhowto.com Articles

  • Can You Still Get Help, Clear Debt with a Home Equity Loan?
  • Equity Home Loans Dependent on Your Location
  • Low Refinancing Rates with No Closing Costs?
  • Reverse Mortgage Home Loans Allow Seniors to Retire Earlier
  • Advice on Home Improvement Loans: Consider Home Remodeling Costs