Are you thinking of availing a home improvement loan? But do not want to spend extra money for that? In that case, secured home improvement loans can be profitable for you.
As the name refers, secured home improvement loans are secured on a security. So, to avail a secured home improvement loan, you will have to pledge some property as security. It could be any valuable objects, such as home, automobile, saving accounts etc. The amount, offered with these loans is ranged from $5,000 to $75,000 and its repayment period varies from 5-25 years. But, normally the determination of repayment period depends on the loan amount, income and the value of equity in the property.
You may think about how a secured home improvement loan can save your money? The answer is very simple. Since these loans are secured on borrowers property, so the risk of lending money becomes less. And for that, lenders do not hesitate to provide secured home improvement loans at lower interest rate. Hence, you can improve your home and at the same time save your pocket from spending extra cash.
However, various purposes-major or minor can be fulfilled with secured home improvement loans. Some of them are as follows:
- Adding new rooms and expands home
- Landscaping garden
- Home renovation, repair
- Refurnishing home
- Making garage and many more.
Secured home improvement loans are also available for the people with bad credit history. People like CCJs, IVAs, bankruptcy, arrears, and default have bad credit score. Generally, availing any sort of loan is tougher for them. But, they can easily apply for secured home improvement loans. As these loans are obtainable against collateral, thus lenders provide these loans to all kinds of borrowers. Only one has to know what his credit score is.
At the same time, you should keep in your mind what would be the effect, if you cannot repay the amount. Do not forget, you are using your property for getting these loans. Thus, in case you cannot repay the amount then your collateral will be seized by the lender. So, always ask for the amount that you are capable to pay off. And do check your financial capacity before going for a secured home improvement loan.
Many of us do not prefer to spend extra money for home improvement purposes. Secured home improvement loans are especially customized for them. These loans are available against collateral. And as the presence of collateral covers the risk of lending money, thus a borrower can easily get these loans at lower interest rate.