What You Need to Know About Secured Home Improvement Loans
A home should be a place where you and your loved ones can relax. If you find yourself wishing for some additional features such as a porch or patio to make it more comfortable, you should consider a renovation. While major updates to your property can cost a huge sum, you can get the funds you need through a secured home improvement loan.
What Are Secured Loans for Home Improvement?
A secured loan usually requires collateral as a condition for borrowing a certain amount of money. One that's specially earmarked for home improvement helps you get the funds you need for your upcoming renovation project. These loans are easier to qualify for and offer more favorable terms as opposed to unsecured ones.
Home Equity Loans for Home Improvement Projects
There are several options when it comes to financing your home improvement project through a secured loan. You need to know which type of loan you should be applying for. One of the most popular choices among consumers is home equity loans.
What Are Home Equity Loans?
Home equity loans are a secured loan that uses your home's equity as collateral for the debt. They are also commonly known as second mortgages. These consumer loans allow homeowners to borrow against the value of their residence. This value is usually determined by a professional property appraiser. Homeowners commonly prefer these loans for financing renovation projects.
Types of Home Equity Loans
There are two types of home equity loans: fixed-rate and home equity lines of credit (HELOC). When you get approval for the former, you get one lump sum. On the other hand, HELOCs provides you with a revolving line of credit.
Things to Consider
Before applying for a loan to fund your home improvement project, you should shop around for the best terms and rates. Consider working with a credit union like OnPath Federal Credit Union. More often than not, these organizations offer better rates, favorable terms, and more personal customer service because they are more focused on covering operation costs rather than making a profit.
Reach Out to Us
You don't have to let finances stop you from making your home as comfortable and as beautiful as you want it to be. OnPath Federal Credit Union is here to help you through a wide range of loans you can use for your home improvement project. Apply online today.