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2007-12-02 22:55:43
Secured Loans to Finance Home Improvements - A Sound Investment Strategy?
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 Home improvements are a great way to add value to your home, especially if you are considering putting your home on the auction block in the near future.
If you really want your home to stand out, or even if you just want the home that you live in to look nicer, then investing in home improvements is normally a very sound financial decision.
The two most important areas of the home in terms of enhancing value are the kitchen and the bathrooms. Nobody wants to buy a home with dingy looking bathrooms and a haphazard kitchen. People look to these rooms first when they are trying to decide whether or not to purchase a home.
It is often said that you can add two dollars of value to your home for every dollar that you invest in home improvements if you do things right. So if you spend 40,000 pounds on home renovations, normally you can realize an increased value on your home of 80,000 pounds. This is quite substantial.
But what happens if you don't have the funds in your bank account to finance home renovations? You can take out a secured loan using the equity in your home to finance the work.
Simply take the appraised value of your home and multiply this number by 1.25. Then, subtract the total mortgage that is outstanding on the property. This number that you are left with will be the maximum loan amount that you can apply for. Because you are pledging the equity in your home as collateral, you are able to pay much lower interest rates than an unsecured loan.
If you are planning on selling your property soon after doing the renovations, then check with your secured loan lender as to how much of a penalty that you would pay if you sold your home and paid off the loan early.
Apply for a Lending Place secured loan today!
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