subject: Home Equity Loans- The Three Main Types Of Home Improvement Refinancing [print this page] When considering home improvement plans, the first thing we usually notice is how much the project will cost to complete it.
When coming up with the cost, you must factor in charges, fees, taxes assessed, and the monthly payment amount. There are many home improvement loans available from lenders today.
Most companies now offer customization of home improvement loans to help be more competitive in the hopes of you choosing them for your financing needs. There are various ways in which you can finance your home for improvements to be made.
Getting together with different financial institutions and discussing your needs and what they can offer you is a great place to begin.You will need to know your income total, your credit history and rating, amount of debt you have acquired and your total assets. This will give the institutions more insight into what they can provide for you.
There are three main types of home improvement finance loans available.
1.Cash-Out Refinance. 2.Fixed Rate Remortgage. 3.Home Equity Line of Credit.
Cash-Out Refinance is a complete refinancing of your existing mortgage. Usually a lower rate is expected with this type of refinancing. This is a good option if interest rates have dipped since you first took out your mortgage and you have gotten a lot of equity built in your home.
Fixed Rate Remortgage is the better option for those of you who would prefer more stability as the payments and rates remain fixed over the time period. This type of loan will not affect your existing mortgage in any fashion.
Home Equity Line of Credit is for those who have built up equity in their property. This option is in ways very similar to that of a credit card.It has an open-end term which allows you to get a credit line based on the equity that you already have and you will only need to pay what you use. This is the best option for those projects that last over an extended period of time.
The process of home improvement processing can be very simple. You should make sure of what you are in need of before going in to do one of these options. Working with your financial institution can help you meet your goals more efficiently and help you to make the correct choice in your home loans, home refinancing, home equity loans, and loan modifications.
by: Jay Leo
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