5 Things to Know Before Getting a Home Improvement Loan

home improvement loan

Deciding to make home improvements and getting a home improvement loan to do them is a big deal — especially the first time you do it. HFS Financial knows the process can be overwhelming, so we are here to help you decide what is best for you. We know there are multiple options for you to choose from, and we want you to make the right choice to ensure your financial future.

Using your Savings Account for a Home Improvement Loan

Your first option in making home improvements is to save your money. Depending on the project you have in mind, this could take YEARS. A typical kitchen remodel would cost at least $20,000, probably more, depending on what you want to change. With the current economy, we know many of us aren’t able to save as much as we would like. Don’t think that you have to wait for a long time to make the renovations you need. With HFS Financial, there are better loan options.

Using Credit Cards as a Home Improvement Loan

Credit cards are another option with a huge amount of risk. If you are only looking to fix something small, taking out a small loan with your credit card is an option. But if your home improvement is a larger project, financing it with a credit card will cause you to pay significant amounts of money in interest. Credit cards have the highest interest rates of any option available to you when looking for a home improvement loan. Consider this option carefully, as it is rarely the best option.

Home Equity Loans for Home Improvement

Many people think of a home equity loan when they begin looking for home improvement loans. They are an option that will provide you with a lower interest rate than credit cards, but you will likely be using the very home you are updating to guarantee repayment. Heaven forbid something should happen and you are not able to repay. You could run the risk of losing your home. Since none of us can predict the future, this is a genuinely alarming thought.

Cash-Out Refinance for Home Improvements

Along similar lines, you can do a cash-out refinance against your existing mortgage. Again, this could get you a better interest rate than credit cards, but you are going to be doing a lot of paperwork. Closing costs will also be involved since you are redoing your entire mortgage, and the new amount of the entire loan could be structured over 15 to 30 years. This method also means you will be paying for your home longer than you originally signed up for. Can you imagine paying 15 to 30 more years of interest on a whole new mortgage? Be sure to check that closing costs won’t cost you more than the project itself, too. 

Personal Loans as a Home Improvement Loan

Want to know your best bet for a home improvement loan? A personal loan provides you with the opportunity for lower interest rates and money up front without putting your home on the line or paying exorbitant closing costs. HFS Financial can help you find the best terms and rates available, ensuring that you get the money for the loan you need. Our rate checker allows you to check your options in just 60 seconds, without impacting your credit score. And our expert customer care team is the industry leader in getting you the money you need for almost any home improvement dream.

Reach out today to get started making the most of your home. We are here to help you get loans for the most amazing home improvement projects you can imagine. From pools to ADUs, we can help you enjoy your most significant investment for years to come. With HFS Financial on your side, “You Dream It, We Finance It.”

5 Things to Know Before Getting a Home Improvement Loan

HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.