Do you want to borrow money for a renovation? Compare all renovation loans for the best offer. By clicking on calculate you immediately see how much you can borrow for a renovation. You can also request more information about the loan. More commentary at http://www.riograndedeltaaudubon.org/bad-credit-loan-online-fast-loans-for-people-with-bad-credit-completely-online/
What is a renovation loan?
A renovation loan is a consumer loan with a number of specific characteristics:
- A longer duration, so that a lower monthly payment can be achieved.
- A fixed interest and monthly amount, so that the interest (subject to conditions) is tax deductible.
- In addition, a number of lenders offer a lower interest rate if there is an owner-occupied home.
Increase renovation loan or mortgage?
Borrowing money for a renovation can also be done by increasing the existing mortgage. However, due to the longer term and tax deduction, the cost difference between a renovation loan and a mortgage has become smaller. In addition, no closing costs are charged for a refurbishment loan and no notary and appraisal are required.
Because the mortgage interest rate is still lower, a mortgage remains interesting with a high loan amount (from 25,000 USD). At lower loan amounts, speed and free closing with a renovation loan may be preferable.
Renovation loan next to a mortgage
It is not uncommon for a renovation loan to be taken alongside the mortgage in order to be able to borrow more. Because the maximum mortgage is based on a term of 30 years and testing for a fictitious burden, it is sometimes not possible to borrow extra. A renovation loan has a shorter duration and is tested against the actual credit burden. This allows more to be borrowed for a renovation.
Calculate here how much you can borrow with a consumer credit.
Borrowing money for a renovation is not always possible
A renovation loan is therefore also tested on your income. In addition, the various lenders have a maximum age at which you can borrow money. The maximum age for a renovation loan is currently 74 years.