Am I Better Off With a Mortgage or Home Improvement Loan
Am I Better Off With a Mortgage or Home Improvement Loan?
“I will be purchasing a new home that needs a little work. The sale of my condo will just cover the purchase price on the new property. If I will need some funds available to spruce up the new place, around $25000. Would I be better off taking out a small mortgage or getting a home improvement loan ? I have good credit.”
It depends on the rate of interest. Remember that a mortgage for your kitchen, bathroom remodel or room addtion project may cost thousands of dollars in closing costs. With a simple improvement loan, you might pay a bit of higher interest but you will avoid all those fees. Ask at your bank about their mortgage rates and interest rates for other types of loans, if there is an application fee, or monthly fee, and if you can make extra payments or pay off early without penalty. If you can get a loan, fixed for several years while interest rates are low.
Chanhassen, MN. Basement Finishing