In light of the housing crisis, experts are encouraging consumers to get a home improvement loan instead of looking for a new house right now. Traditionally, banks are much more willing to lend on a home’s equity for this type of home improvement loan and consumers with good credit should be able to get a good rate.“When it comes to funding home improvement projects, consumers with equity in their homes have multiple options, such as taking out a home-equity loan, setting up a home-equity line of credit or refinancing an existing mortgage,” says Stephen Semprevivo, president of LowerMyBills.com. “Homeowners that don’t have a lot of equity in their homes, or don’t want to tap into that equity, may find that simply refinancing their homes can help offset home improvement costs.”Although banks have tightened up their lending restrictions, taking out a home improvement loan based on a home’s equity or refinancing for this purpose, may be a good idea for consumers looking to weather the current economic storm. On the plus side, making improvements to their homes can result in a higher value in a time when other property values are plummeting.
Related reading: Home Improvement Loan
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