What is a home improvement loan?
A home improvement loan is an unsecured personal loan that you use to cover the costs of home upgrades or fixes. Lenders provide home improvement loans for up to $100,000 with rates typically between 6% and 36%.
Because you don’t put up your house as collateral for the loan, your rate is based on your credit and income information. If you can’t repay the loan, your credit will take the hit.
Should you get a home improvement loan?
A home improvement loan can make sense if you don’t have a lot of equity in your home or you don’t want to use your home as collateral.
Ideally, you can qualify for a low rate and monthly payments that you can afford for the life of the loan. Payments on home improvement loans are usually fixed, which means you can reliably schedule monthly payments into