A 125 home improvement loan allows the homeowner to borrow up to 125% of the value of their home for home renovations. It is considered a high-risk loan because the home is used as collateral and if the borrower goes into default the lender will enter foreclosure. With that being said, it can also be beneficial to homeowners who have large home improvement projects. As long as the borrower makes their payments on time, a 125 home improvement loan has several advantages:
It gives you the financing that you need to make dramatic improvements to your home which in turn will significantly increase the overall value of it. If you choose the right renovations, you may be able to increase the value enough to where it will exceed what you owe on your mortgage as well as the loan used to renovate the home.
125 home improvement loans are high-risk and many people will tell you to steer clear of them due to the fact that they tend to carry a higher interest rate. If, however, you do not have the equity in your home for a traditional home equity loan, and you need to make repairs, they might be the only alternative. The interest rate will be high but not as high as it would be with unsecured or personal loan.
Due to the restrictions and limitations of a 125 home improvement loan, you will be more likely to complete your projects in a timely manner. Knowing that you have someone holding you accountable will keep you motivated. So, if you are a procrastinator by nature, this might just be the perfect loan for you.
They are flexible in that they can be used for just about any type of home improvement project. Just make sure that the improvements you make are value adding such as finishing your basement, adding a new bathroom, or renovating your kitchen. You could also replace the windows, put in new flooring, or replace the siding. Check with your local real estate agency to determine which projects add the most value to your home.
You will have piece of mind knowing that your home is safe as well as the satisfaction of having a home that is customized to fit your tastes.
A 125 home improvement loan can be the answer to your home improvement needs. Make sure you choose a reputable lender when you are searching for your loan, and find the lowest interest rate possible. It is also important to read all of the terms before agreeing. If you do your homework, you can get a great deal on your home improvement loan.
by Tina Porter
No comments:
Post a Comment