Whether you need to remodel your kitchen, fix your roof, upgrade your living room, or lay out a new floor, each of these scenarios will require you to splurge a hefty amount of cash. Not everyone can afford to arrange such large amounts at short notice, and this is where a home improvement loan comes in handy.
Best home improvement cost estimate
If you need to borrow money to fund your home renovation plans, it is indispensable to do your homework and weigh up the pros and cons of each loan option. Kunkun is a platform that allows you to compare the various home improvement cost estimate available in the market and determines the one that best suits your financial circumstances. Some of the loan estimate options recommended by Kunkun are:
A personal loan also called an unsecured or a signature loan is a lump sum fixed loan amount that is not secured by collateral or residential property. You can use this amount for any home improvement activity like expanding your home, converting your loft, or remodeling your kitchen. Such loans are ideal for short-term financial needs.
Home Equity Loan
A home equity loan, or simply an equity loan is a fixed loan amount which is secured by a collateral or residential property. It is used to access the existing equity in your home. Such loans are allotted in a lump sum and their interest component is tax deductible. If you want to save on paying huge monthly interests, you can consider a home equity loan.
Home Equity Line of Credit (HELOC)
A HELOC is a loan in which the lender agrees to lend a borrower maximum amount that is to be repaid within an agreed period or term. It is similar to credit card, you can take as much money you need until you reach your limit and make monthly repayments.
In addition to the above loans, there are other options which you may use to fund your home renovation project such as conventional fixed/ adjustable rate mortgage, conventional hybrid adjustable rate mortgage, HomeStyle mortgage, and FHA 203k loan.
Why consider a loan to finance your home improvement project?
Home renovation projects can ensure a fair amount of return on an investment after completion. Similarly, a home improvement estimate can be a wise decision on your part and quite advantageous due to the following reasons:
- Competitive interest rates
- Flexibility of repayment
- Immediate solution to the cash problems
- Variable loan amounts
- Quick turnaround time
- Minimal documentation
- Several lender options
- Flexibility of usage
Usually, remodels turn out to cost more than the budget you estimated and take a considerable amount of time to complete. So, choose a cost estimate that best suits your needs and invest only the required amount of money on renovations.