Questions to ask yourself when evaluating your home improvement loan options
- Are the improvements you plan to undertake increasing the value of your home more than the loan you apply for?
- What will the monthly payments be?
- What are the tax implications? Possible tax deductions?
Although the actual deal that you get with a lender will depend upon your circumstances (credit history, salary, age, joint or single application, collateral, amount to be borrowed and length of payback period) a good guide is the typical APR (Annual Percentage Rate) that the lender quotes. Go to your local bank and building society branches and get details of there best rates.
Another option is to search Google for "Home Improvement Loan comparison" to find sites that automatically list the best deals of the day. Your lender should tell you what the total cost of repayment of the Home Improvement Loan would be. In this way any additional 'hidden' charges can be seen when comparing lender deals.
