Once you own a home, youll get the urge to make home improvements. Often, youll need a home improvement loan.
Home Improvement Loans
Whether youve lived in a home for years or just purchased it, youll get the urge to make improvements. Its a natural urge to want to redo bathrooms and kitchens or perhaps have a go at the landscape. Room additions are also popular, particularly if youre planning for an addition to the family. Room additions become extremely popular when you arent planning for a family addition, but have one coming anyway!
If youre going to make improvements, you are often going to need funds to make them. This is where home improvement loans come in. Such loans typically come in two forms, a home equity line of credit and a home improvement loan 2nd deed of trust.
Home equity lines of credits, known as HELOCs, are excellent options if you equity built up in the loan. Essentially, a lender will grant you a credit line equal to a percentage of the equity secured by a 2nd trust deed on the property. As you make improvements, you simply write checks off the line to cover the costs. Importantly, check with your tax professional to see if...