After so much time cooped up in their homes during lockdowns, many people have reached a point where they’ve decided it’s time to make some major improvements or renovations to the house. At the same time, many homeowners are taking advantage of the hot sellers’ market to upgrade to something new.
Now’s a great time to undertake these construction projects, and a consumer loan can be extremely useful for funding these projects. These loans allow you as a homeowner to easily and cheaply borrow money for renovation and improvement work for your house.
Let’s take a look at why you might want to consider a consumer loan, what benefits they offer and how to apply for one.
Why you should consider a consumer loan
Improvements and renovations are some of the smartest ways to build home equity and potentially increase your property value. But not everyone has the spare money to invest it back into their home. However, this doesn’t need to be a major setback if this is the case for you.
Banks offer consumer loans to customers who are trying to improve existing assets. In this case, you can use it for home improvement projects like re-doing your bathroom, re-shingling your roof or renovating your kitchen.
With the money in hand, you are in charge of how you want to update your home. This provides you with the flexibility and freedom to put your mark on your property and truly transform it into your dream house.
The benefits of a consumer loan for home improvements
Compared to other types of loans and credit, consumer loans come with a host of benefits specifically tailored for you.
First off, consumer loans typically carry lower interest rates. In most instances, the interest rate will be lower than the one on your normal credit card or hardware store credit card.
You only need to make a single monthly payment. This helps keep the payments much more manageable for homeowners, without overwhelming you with a convoluted term schedule.
Unlike a mortgage, consumer loans generally have much shorter fixed terms of only around three to five years.
Best of all, there are no hidden fees or prepayment penalties. This means you can pay off the loan as quickly as you like, while not having to worry about any additional costs.
How to apply for a consumer loan
Applying for a consumer loan from the bank you have a mortgage with is usually a simple and straightforward process.
You can work with your mortgage lender to calculate your earnings potential, home value and credit score to get the lowest eligible rate for the loan.
After applying, you’ll receive a follow-up call from the lender to ensure you obtain the right financial product to best suit your particular needs.
Once approved, you’ll have the money you need to make home improvements and boost your equity.
The Federal Savings Bank offers unsecured loans to qualifying customers. Apply today.
Subject to credit approval. Terms and conditions may apply.
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.
