Avoid Mortgage Refinancing with a Home Repair Loan Calculator

by Simon Hopes Author

Everybody wants their house to stand out in their neighborhood, right? Or at the very least, they will want to feel comfortable and secure in the place they call 'home’. Should you have purchased a brand-new property; the chances of funding repairs within the first few years will (hopefully) be minimal. The same cannot be said for dated properties, however.

From deterioration within the building structure itself, to mould on the ceilings and defects with the roof, time can really take its toll on the condition of a home. So much so, in fact, that approximately 60% of home buyers used some type of conventional loan back in 2016. Whether you're residing in a residential property or want to update a commercial building, a home repair loan calculator will certainly come in handy.

Isn't borrowing money a bad idea?

Borrowing money from a reputable lender doesn't mean that you have failed in the financial stakes. It actually means you are responsible enough to take control of the situation and improve it, regardless of your decision to spruce up the property’s interior/exterior or revamp it in preparation for a real estate investment.

A mistake that many first-time loan applicants make is refinancing their mortgage without first using a home repair loan calculator. What is this, you ask? Well, this special calculator will enlighten you on custom refinance rates, interest rates, loan amounts, eligibility, etc. Basically, the more you know before contacting a lender, the easier and faster the process will be.

Why is mortgage refinancing not recommended?

Property mortgage rates are constantly fluctuating, making it near impossible to predict what kind of financial situation you'll be left in when you eventually refinance a mortgage. When rates are fairly low, refinancing could earn you some extra money, but is it worth the risk?

Borrowing from a loan company means you can take your time to uncover the most desirable interest rates and payment terms, making this a more flexible option for someone who needs an affordable repayment schedule.

The Financial Benefits of Lending Funds for a Property Revamp

In most situations whereby a property owner borrows funds for a home revamp, they will obtain credit to increase the property value (for selling purposes), to enhance safety and security, or simply to update the space according to their tastes. While you could fund a property revamp by spending months (or even years) stashing money aside, a home repair loan is a faster option.

Commeecial and industrial loans are on the rise, with borrowers having the advantage of affording home improvements and US banks seeing an increase in quarterly profits, according to information published on Reuters. This is effectively benefiting the economy and giving borrowers a chance to increase the resale value of their investment, devoid of financial worry.

What information will I need to use a home repair loan calculator?

If you want the loan payment calculations to be as accurate as possible, you must provide honest and specific information when using the home repair loan calculator. For example, you cannot lie about how much money you make. The simplest way to figure out annual payments is to take the annual interest rate and multiply that number by the total loan amount.

Pay this monthly balance on time and you could boost lender trust, as well as improve your credit score. Avoid taking out a home repair loan if you are in doubt, since this will likely result in you being blacklisted by other loan companies. A home repair loan calculator is a vital tool for becoming a more responsible borrower.

Will I be approved for a home repair loan with bad credit?

Not all loan companies will set rigorous standards when deciding who is eligible for a home repair loan. There are plenty of options out there for individuals who have a poor credit history. Judgements, bankruptcy, defaults and various other financial pitfalls can leave a mark on your formerly perfect credit score.

It goes without saying that a lender will determine how confident they feel about a borrower, if their lender credit history indicates previous problems. This is not an ultimatum, however. What really matters is how you are able to manage money now and so, if you can prove why you qualify for finance with bad credit, you're in with a shot of being approved.

A few tips for increasing the chances of approval for a home repair loan with bad credit include:

● Finding a co-signer/guarantor

● Look into peer-to-peer lending

● Increase your income to ease monthly payments

● Spend less money on unnecessary things

● Repair your credit score by repaying existing debts

Raising your credit score will not happen overnight. However, if you remain consistent in your home repair loan payments, your trust rating will improve and you can avoid paying ridiculously high interest rates.

Can I avoid using equity to afford a home renovation?

Borrowing against your house in the form of equity means that you are putting your home at stake. Are you feeling tempted to dip into the equity money pot and use the money to find a home improvement? If so, stop for a moment and consider your alternative options.

Although equity can be used for any purpose, this money is backed by your property's value. On the other hand, a home renovation loan will be available in a secured/unsecured plan. An attractive aspect of using a loan instead of home equity is that the loan can be repaid over a long period of time, relieving you of any concerns.