Best Home Improvement Loans in 2019

Best Home Improvement Loans in 2019
Amy Fontinelle
on June 28, 2019
Read in 1 min

Many people don’t have the cash on hand to deal with home renovations or repairs.

Others prefer to keep that money in the bank for an emergency, like unemployment.

A personal loan can provide the funds you need to fix your home’s problems or just make it a more pleasant place to live in.

Can you get a loan for home improvements?

Home equity loans and lines of credit may have competitive interest rates because they’re secured by your home.

Home equity loans may require you to borrow a lump sum. If you know exactly how much you need to borrow and you need it all at once—for a kitchen renovation, perhaps—that’s perfect.

And a home equity loan’s fixed interest rate can give you a predictable repayment schedule where you owe the same amount each month.

If you aren’t sure how much you need to borrow or when you’ll need it, a HELOC can save you money by allowing you to borrow smaller sums as needed.

HELOCs have variable interest rates, however, so your payment can fluctuate and may increase over time:

  • U.S. Bank,
  • Bank of America,
  • Flagstar,
  • Citi Mortgage,
  • SunTrust,
  • Chase,
  • PenFed Credit Union,
  • PNC,

and many other lenders offer home equity loans and lines of credit.

If you want to go the credit card route, a card with a 0% introductory APR may be ideal. It doesn’t have to be a card from a home improvement store.

Just make sure you don’t borrow more than you can repay before the introductory period ends, or you’ll be hit with a ton of interest.

Personal loans, which are unsecured and can be used for any purpose, are another option.

Unlike credit cards, they may have a set repayment schedule—say, three to five years—which gives you a timeline for getting out of debt and can keep your total interest cost down.

What is the interest rate for a home improvement loan?

As of mid-November 2019, the national average home equity loan rate was 5.92% fixed and the HELOC rate was 6.21% variable, according to Bankrate.

The average credit card rate was 17.58% variable, according to Bankrate, while the average personal loan rate for a borrower with excellent credit was around 10% to 12%, according to personal finance website Value Penguin.

Whatever type of home improvement loan you want, make sure to consider your options.

Need Cash? Get a Personal Loan Today

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Disclaimer: This is not legal or financial advice. Please consult a legal or financial advisor for your specific situation.

Amy Fontinelle Finance Journalist

Amy Fontinelle is a writer, editor, and personal finance expert.

Her articles have appeared at Investopedia, Bankrate, MassMutual.com, The Simple Dollar, Interest.com, Yahoo, Forbes.com, SFGate.com, Bankaholic, Mortgage-Calc.com, Saving Advice and other sites.

Amy’s clients include personal finance websites, financial institutions, public policy organizations, academic journals, and professional economists.

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