All About Home Improvement Loans
Posted by rupee on Wednesday, March 6, 2013 Under: Home Loans
Home improvement loans can be borrowed from any bank in order to finance beautification of your owned home or rented accommodation. The underlying principle of such type of loan is to serve the purpose of enhancing aesthetic of your home as well as its value. Generally, loan of such type is borrowed to satisfy the purpose of repairing, remodeling and making some significant changes of your home in order to improve the value and beauty of it. Making a necessary change in landscape and even a swimming poll of your home is construed as significant part of home improvement now-a-days.
Hence, home improvement, in its entirety is a significant approach to enhance the face value of residential property in order to increase the estimated value of your home. Since improvement of such kind requires investment of finance on a large scale, people consider home improvement loan one of the best means to arrange adequate financial assistance to accomplish this purpose.
Things to consider
Is purchasing home improvement loan will really increase the face value of your home by superimposing its beauty?
EMI on monthly basis
Stable source of income
Tax implications on home improvement loan
Tax deductions involved
Types of home improvement loans
First Mortgage/Loans
In general, home improvement loans are sustained against your first mortgage. Moreover, your loan can also be extended for the remaining period of the original mortgage, but it is quite prudent of you to have a thorough discussion over terms with your mortgage lender in this regard. You should also understand that your loan for home improvement can be paid out proportionately to the work undertaken and your bank or lender will pay loan to contractor directly.
Second Loans or Home Equity Loans
Home loan of this type is also known as home equity line of credit to which, the equity of your home can be treated as mortgage during failure of repayment of outstanding loan. However, as a loan seeker, you should study all pros and cons and compare different alternatives to fend off any problematic issues in later stages.
Home Loans Refinancing
This type of loan is used to multiple purposes such as reducing your payments, holding up your payments, deferring payments and in certain case like releasing some finances in order to improve value of your existing home.
Personal, i.e. Unsecured Loan
One of the best features of such loan is that your home is not required to have its equity nor you are required to borrow the loan against property. In India, banks such as HDFC, SBI and others offer unsecured home loan for this purpose.
Home improvement loan has its own significant features that conclusively serve the purpose of enhancing face value of existing home by contributing big changes. Enough loan like home improvement loan can help you sort out needs. Given the cost of renovation, the loan is very good to solve your needs.
Hence, home improvement, in its entirety is a significant approach to enhance the face value of residential property in order to increase the estimated value of your home. Since improvement of such kind requires investment of finance on a large scale, people consider home improvement loan one of the best means to arrange adequate financial assistance to accomplish this purpose.
Things to consider
Is purchasing home improvement loan will really increase the face value of your home by superimposing its beauty?
EMI on monthly basis
Stable source of income
Tax implications on home improvement loan
Tax deductions involved
Types of home improvement loans
First Mortgage/Loans
In general, home improvement loans are sustained against your first mortgage. Moreover, your loan can also be extended for the remaining period of the original mortgage, but it is quite prudent of you to have a thorough discussion over terms with your mortgage lender in this regard. You should also understand that your loan for home improvement can be paid out proportionately to the work undertaken and your bank or lender will pay loan to contractor directly.
Second Loans or Home Equity Loans
Home loan of this type is also known as home equity line of credit to which, the equity of your home can be treated as mortgage during failure of repayment of outstanding loan. However, as a loan seeker, you should study all pros and cons and compare different alternatives to fend off any problematic issues in later stages.
Home Loans Refinancing
This type of loan is used to multiple purposes such as reducing your payments, holding up your payments, deferring payments and in certain case like releasing some finances in order to improve value of your existing home.
Personal, i.e. Unsecured Loan
One of the best features of such loan is that your home is not required to have its equity nor you are required to borrow the loan against property. In India, banks such as HDFC, SBI and others offer unsecured home loan for this purpose.
Home improvement loan has its own significant features that conclusively serve the purpose of enhancing face value of existing home by contributing big changes. Enough loan like home improvement loan can help you sort out needs. Given the cost of renovation, the loan is very good to solve your needs.
In : Home Loans
Tags: home improvement loan home loan
