Six Benefits Of A Renovation Loan That You Never Knew About
Getting a renovation loan goes beyond home fixes.
It’s more than just beautifying your house – you get to build the home of your dreams.
1. It’s more practical.
Getting it would mean improving the living conditions in your house as soon as possible.
Aside from your office, your home is where you will spend the most time in. You should live in a comfortable place that meets your needs.
When spending a night in your room compromises your sleep due to stuffiness, a quick improvement in its ventilation can solve the problem. On the other hand, if your electrical wirings or plumbing need emergency repairs, you should immediately see to it and make sure it doesn’t cause any more unwanted accidents.
Moreover, investing in some burglar-proof doors or electronic locks and windows will ensure safety for you and your loved ones.
The scenarios mentioned above are just examples, but they show how necessary renovation loans are when you and your family need them.
2. Increasing property value.
This is a great option if you want to sell or rent out some vacant properties you own. This is a great way to generate passive income.
In doing that, you can ramp up a property’s worth by doing the necessary fixes. Suppose a prospect contacts you and requests specific changes you find realistic enough; meeting their demands can establish a good start for price negotiations.
You might consider remodeling those bathrooms or basements since these parts usually prove the most valuable. When you think about it, getting this loan serves as a long-term investment in your property.
Thereafter, you can decide to sell your property when the market is doing well.
3. Cost-effective compared to personal loans.
The third reason is renovation loan is more advantageous than a personal loan on some occasions.
The biggest reason that backs up this point is that a renovation loan usually offers a lower interest rate than personal loans.
Suppose you only need a little cash for some needed repairs or a minor structural improvement. In that case, a renovation loan makes more sense.
The financial institutions that RenoLoan works with will usually grant your applications within a day, allowing you to carry out your renovation plans as soon as possible.
4. A better alternative to refinancing.
In connection to the previous benefit, renovation loans are also more advantageous than refinancing for some instances. Refinancing can change your current mortgage. Letting that change happen can do more harm than good, especially if you have a low credit score and you do not see it improving in the coming years.
Aside from that, more importantly, you might not afford the new mortgage when the current rates are higher. You can expect fixed monthly payments in choosing the renovation loan, so you do not worry about possible adjustments.
This advantage works well for those people aiming for stability predictability in their finances.
5. It’s more reliable than credit cards.
Banks often call consumers to recommend credit cards for their usage. While it might seem like a feasible option, it is only viable if the consumers are able to repay their credit card bills on time.
A credit card charges an insane amount of interest which can easily get you knee-deep in debt.
Here’s an exmaple. Using your credit card for a home improvement is already risky because you can lose more value than you initially had in the end. Suppose you cannot pay the full borrowed money within its no-interest period. In that case, you might end up struggling with managing your debts.
Also, while using credit cards are alright for small-scale projects, it won’t be wise for large-scale projects of $30,000 and up. An interest of 24.5% on that amount is not practical.
6. A better use of your money.
For the final reason, choosing a renovation loan will benefit you all the more in the long run.
When you have a fixed budget and plan to stick to it for home improvement, you can gain some flexibility for your monthly payments. In connection, you have the freedom to choose the payback period that works for your financial situation.
Suppose you also consider this loan’s lower interest rate. In that case, you can have enough wiggle room in your finances to pay up and invest in other essential things. Combining all these benefits, you will not struggle a lot to reach a break-even point with the lender.
Use A Loan Comparison Tool To Save Time
You don’t have to do all the research and spend all the hours searching for the best loan.
RenoLoan offers a free tool that helps users narrow down their best renovation loan options. It’s quick and easy to use!
The best part? It is totally free of charge!