Home improvement loans can typically be used for most home improvements, including: additions, remodeling, landscaping, painting, a new roof, a swimming pool, and much more. Remax cites a 2003 HomeGain Survey of 2,000 real estate agents nationwide which offers some interesting information on the average returns of home improvements on the selling value of your home, which may help you to decide where to begin. Investments and work in the ?lighten and brighten? and ?clean and de-clutter? areas offer the largest returns on the value of your home, at 769 per cent and 594 per cent respectively.
In order not to waste home improvement loans, as always, you must do research. Here are some good things for those in the market for home improvement loans to remember: find a reputable and established contractor, ask for a list of references, put everything into writing, and ask contractors about accident insurance.
Now, you can choose a home improvement loan that borrows from the equity built up in your home, or you may choose to take advantage of a personal loan, which requires no equity in the property. Many banks offer flexible terms and repayment schedules for those with approved credit on the latter type of home improvement loans. The advantage of the home equity type of home improvement loan is that because it is essentially rolled into your mortgage, the interest is tax deductible. There are a few exceptions: if your mortgage is more than a certain amount or if you took on a mortgage for something other than buying, building, or improving a home.
As always, be sure to research the lenders from whom you are considering taking home improvement loans. Make sure that they are reputable and that you will get a worthwhile return, in home value, from the financial and labor investment you plan on making.