Taking out a personal loan can help you tackle any number of goals you may have.
Personal loans are flexible enough to be used for just about anything you need, and can be immensely helpful for accomplishing expensive projects or improving your financial health.
Here are three great ways to use a personal loan:
1. Home updates before selling
Most homeowners can name at least one home improvement project they'd like to tackle. Making updates before putting your house on the market can result in a higher appraisal value, and likely a better selling price.
Before deciding which home improvement projects to take up before a sale, focus on updates that will improve the value of your home. Choose projects for which you'll easily be able to recoup the cost.
Some of the most lucrative home improvement projects, according to the National Association of Realtors, include:
- Insulation upgrade: recover up to 83% of the cost.
- New wood flooring: recover up to 106% of the cost.
- New roofing: recover up to 107% of the cost.
2. Home updates after buying
A home is a huge financial investment, and one that can leave you strapped for cash immediately after the purchase. But your new abode may not have all the essential features you need – most of the time, homebuyers must make some type of compromise.
If you or a family member has specific requirements for making a home as comfortable as possible, it's important that you address them promptly.
Wheelchair ramps and accessible bathroom features are important upgrades for those with disabilities. Replacing carpeting with hardwood floors can also make it easier for people in wheelchairs to get around a home, Family Handyman pointed out.
Updates that make your home more livable or suited to your lifestyle don't have to wait. A personal loan can help you tackle necessary improvements quickly.
3. Get rid of high interest debt
High-interest debt such as credit card balances can make it difficult to feel financially secure. If you have multiple high-interest loans, you're not only paying for multiple debts, but also managing multiple payments.
A personal loan can help you consolidate debt into one payment, which makes it much easier to keep track of. Plus, a personal loan at a lower interest rate than your other debts will save you money.
Another benefit of using a personal loan to pay off your debt is lowering your debt-to-income ratio. DTI is an important factor that lenders look at when determining how much credit to approve for you. With a lower interest rate on your debt, you'll be able to pay it off faster, reducing your DTI.
To learn more about personal loans, and your options for obtaining one, reach out to the lenders at The Federal Savings Bank. We'll work with you to ensure you get the best loan for your needs.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.
