Archive for the ‘Kitchen Home Improvement’ Category

Home Equity Loan Vs. Refinancing

By Alan Lim

Confused whether to get home equity loan or go for cash-out refinancing? You are not alone! Know more about these two loan schemes through this article.

Home equity loan and refinancing are two excellent ways that can help you manage your finances. However, it may prove difficult to choose one from the other and should depend on what your financial goals are. You can opt for the lower payment schemes of cash-out refinancing, or you can choose the great tax benefits offered by a home equity loan. The choice, however, does not prove to be as simple as this. Here is a comparison of these two types of loans to help you see which one is right for you.

Cash-Out Refinance Loan

Cash-out refinance simply means that you are refinancing your existing mortgage in order to lower your monthly payment and/or your current interest rate, and get some additional cash for other pressing reasons such as for home improvement, renovation, and the likes. If you are lucky to choose the right timing, you may be able to get all these with cash-out refinancing. Say, your home is valued at $300,000 and your existing mortgage balance is $200,000, your home equity remains at $100,000. You are free to borrow the remaining equity as you deem necessary.

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Home Equity Loan

Home equity loans are usually provided in two kinds: the home equity line of credit and the home equity installment loan. A home equity line of credit line means that you are borrowing against the value of your home; your home is your collateral to the credit. Home equity plans are usually set at a fixed time; say 10 years but with variable loan rates. Your interest rate and the annual percentage rate of your mortgage can move up and down depending on the market trends. During the specified time, you are free to obtain the cash when you need it, and pay only for what you happen to spend. Some mortgages are offered with payment of full outstanding balance, while others allow repayment over a fixed time.

On the other hand, an installment loan is a loan that has a fixed rate that stays the same all throughout the rest of your home equity loan terms. Also called the closed end home equity loan, you amortize your loan for periods lasting up to about 15 years. In this kind of home equity loan, you usually receive a lump sum at closing depending on your home value, and you can not borrow further afterwards.

Which is better?

Remember that interest rates do not usually behave normally, much as you want them to. When this happens, home equity loans may actually prove cheaper than refinancing, although they are potentially riskier. Choosing what is better between the two should depend on individual circumstances. For example, if you plan to pay off your mortgage and do not need as much money, you can go for a home equity loan to get lower rates and shorter terms. On the other side of the fence, with cash-out refinancing, you can get all your money up front and simply pay off interest and principal on a lowered monthly basis as agreed upon, with no frills. Weigh carefully based on what your financial objectives are and choose one which you think will give you a fairer deal.

About the Author: Want to know how to go about with your current finances? Need some financial advice on what to do with your home mortgage? We can help! Visit

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Secured Home Improvement Loans: Its Like Building A Second Home So Weigh Your Options!

By Marsha Claire

With Christmas around the corner, Im all set to get my Christmas cards and decorations, but looking at things here, I think I could use a good decorator to enhance the whole Christmas scene. Im sure many of you reading this may take a look around and think of changing things a little bit too. Painting, redecorating, repairs, renovations and other such home improvements can only be financed if youve saved enough over the year or have other such sufficient financial reserves to rely on. But wait a minute theres another option you could consider Secured Home Improvement Loans.

For many of us, the word loans still screams beware. But instead of running away from it all the time, lets take a look at the opportunity loans can create for us in this case, Secured Home Improvement Loans. Secured Home Improvement Loans provide you with that handy cash you are in need of to make necessary home improvements. When we talk about such specific loans, the purpose of your loan has to be very clear home improvements. Home improvements here, are not the simple temporary repairs that we usually talk about, instead they are those that make a permanent modification to your property. Home improvements could therefore be changes like complete home-makeovers, redecorations, addition of an entire storey to your home, a new sit-out, an added garden or backyard, etc.

Secured Home Improvement Loans are very essential because in addition to helping fund that renovation, these loans help raise the value of your property. Modifications like those mentioned above besides adding capital value to your property, also add to its aesthetic value.

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To get yourself a Home Improvement Loans that is rather affordable, you should stick to the secured options, because they are more cost-effective. When you take a Secured Home Improvement Loan, it is essential that you offer collateral of significant value. Lenders grant loan amounts, depending on the value of your collateral equity in your home, your automobile value, bank account balance and your financial credibility. Collateral of greater value helps you get more money to make more significant modifications. Usually Secured Home Improvement Loans are approved for amounts ranging between 5000 and 75,000, however, this amount does vary with the collateral value and your credit history.

For Secured Home Improvement Loans, your credit history does make a big difference. A good credit history helps lower the interest rate of the loan. This is because a lender is assured of your repaying the loan when you have a credible financial past. He therefore, freely lowers costs, reduces lender fees, documentation charges, raises the gettable loan amount, stretches the loan term and offers you all kinds of flexible repayment options. At the same time, a bad credit history will not stop you from getting a Secured Home Improvement Loan, however, it will not lower costs as much as it did for those with good statements.

All the small points make a difference at the end because all you all know that interest rates decide the cost of the entire loan. Longer terms stretch your instalments making your monthly repayments smaller. Getting yourself up-to-date on all the requisite information is necessary no doubt, but getting it from the right lender also matters just as much. This is why it pays to take your time and visit various lenders before finalising on any agreement. Looking for lenders online is more helpful because of the time you save and the paperwork you avoid. At the end, getting yourself a cheap Secured Home Improvement Loan and getting it from the right lender is vital. Better your home by bettering your options and better your options by bettering your search!

About the Author: Marsha Claire is offering loan advice for quite some time. To find Secured Auto Loans, Secured home improvement loans, Unsecured debt consolidation loans, Secured loan uk please visit


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