While we are no longer in a recession and home prices are starting to return to their previous levels, it is never a bad time to invest in home improvement loans. With loan rates still at attractive levels, and plenty of contractors and home improvement specialists looking for work, now is a great time to get a loan so you can start all of those home renovations you have always dreamed of, but put off. Here are 5 reasons you should apply for a loan today.
1. Low Home Equity Loan Rates
Even though the recession is over, the interest rates on home equity loans are still at very low rates. These loans use the equity that you have accrued in your home as collateral to finance your renovations and improvements on your house. Typically, this type of loan offers very attractive interest rates and terms, and can often be rolled into your existing mortgage so that you still only have one monthly housing payment.
2. Lower Energy Costs
If your renovations involve making your home more energy efficient, such as installing double paned windows, adding insulation to your basement or attic, or installing programmable thermostats and Energy Star certified appliances. When you do this, you will likely earn back the cost of investing in these improvements from the savings you receive on your electricity bill each month. Often, you get tax credits, discounts, and other incentives for making these types of improvements on your home as well.
3. Availability of Quality Contractors
Luckily, in the past few years there has been a surplus in the availability of quality contractors looking for work. What this means for you is that you can often achieve your renovations for cheaper costs than you might have at any other time. Depending on where you live, you can typically have several contractors submit competing bids for your work opportunity.
4. Increase the Resale Value
Every dollar you spend improving your house increases its value, and the future price that someone may be willing to pay for it in the future. If you plan to sell your home in the next few years, making these repairs and improvements now are a great investment in the potential upside of selling your home in the future. When you sell your home, any prospective buyers will likely have an inspection completed on your home. Doing this in advance is a great way to save money and avoid having to make costly repairs when trying to sell.
5. Enjoying the Improvements
Finally, there is something to be said for increasing your and your family’s enjoyment of your home. Whether that means getting those bamboo floors or granite counter tops you have always wanted, or making your home more energy efficient to save money on your monthly bills. Beautifying and otherwise claiming your space is an important part of what it means to be human.
