topic Re: Home Improvement/Personal Loan in Personal Finance

Home Improvement/Personal Loan

Mikesan410 — Fri, 13 Dec 2024 08:06:45 GMT

I’m in search of a low interest long term loan to finance some projects around my house. I’d like to finance for 15-20 years and require about $150k-$200k. Which credit unions or lenders are out there which can provide such financing without requiring that I submit contractor bids as part of my application? I’m familiar with Lighstream and have used them in the past for a 50k loa, however I’m still short 100k. Would appreciate some recommendations from those who are knowledgeable in this arena. Thank you very much.

Re: Home Improvement/Personal Loan

ptatohed — Fri, 13 Dec 2024 10:51:12 GMT

How much equity do you have? HELOC?

Re: Home Improvement/Personal Loan

Mikesan410 — Sat, 14 Dec 2024 00:57:36 GMT

I have a nice bit of equity in our home

but am looking to keep this loan separate. Don't want to mess with the equity unless I'm buying something else.

Re: Home Improvement/Personal Loan

markbeiser — Sat, 14 Dec 2024 05:44:06 GMT

@Mikesan410 wrote:
I have a nice bit of equity in our home
but am looking to keep this loan separate. Don't want to mess with the equity unless I'm buying something else.

A home equity loan or line of credit typically will cost you a lot less in interest, and if you have the equity in the home, get you a bigger loan/line of credit than a personal loan.

Re: Home Improvement/Personal Loan

JoeRockhead — Sat, 14 Dec 2024 13:27:53 GMT

You're not going to have any luck finding a personal loan of that size, or those terms. Any personal loan is going to have higher interest rates and typically limited length of payment terms as well. For example: BHG offers personal loans up to $200k. However, their minimum APR (granted based on your credit) is a tick below 12% (plus origination fees) and their max term is 10 years.

For lowest cost, lower interest, and the longer repayment terms you're looking for, a HELOC, home equity loan, etc... is going to be your most realistic option.

Re: Home Improvement/Personal Loan

KatzNDawgs — Sat, 14 Dec 2024 13:49:10 GMT

While I would never recommend a HEL or HELOC for "personal" use (non-home reasons), if you are using it for actual home improvement as it sounds you are - that it the ideal use of one. Projects on the home will add to the value and you get a better interest rate, so it is a win/win situation there.

Re: Home Improvement/Personal Loan

salt_water_swimming — Tue, 17 Dec 2024 08:18:12 GMT

If it helps with your loan shopping, I just recently closed on a DCU HELOC @7.75% and 20 year draw/20 year repay terms

I don't see how a personal loan could measure up to those terms, but if you find one, let me know