Front Row: Danny Carr, John Britten, Johnny Keach, Johnny Cash, unknown, Al West . Back Row: Mack (?), Doug Dillon, Dewey Ramsby, Ken Doty, Tommy Bledsoe, unknown
http://www.enf.org/Eagle/2004Fall/The%20Eagle%20Fall%202004.htm
When a home needs some maintenance work carried out, an ideal
way to ensure this can be achieved is by arranging a remodeling program,
providing you can raise the finance; the easiest way to refresh a tired
looking house is to arrange a home improvement loan. Home improvements can be
costly, involving contractors, supplies, and tradesmen such as carpenters,
plumbers, roofers, and electricians.Two types of home
improvement loan exist; secured loans which are based on the equity in the
property and those that require no security at all. Fortunately loans that do
not require the home itself as equity are even available to brand new
homeowners. The maximum period for finance without any form of equity can be
up to fifteen years.
There are, however county limits on how much money can be
borrowed when it is for no equity finance and a lower limit imposed by the
lenders which takes into account the joint income of both owners. The loan
process for people applying for a no equity loan is minimal even though the
property and type of improvements planned are looked into.
Remember a secured home improvement loan is using spare
equity in your property but this course of action is not for everyone. This is
not the same as your original mortgage; instead, it is an additional loan that
is often easier to obtain and process compared to a regular mortgage; usually
providing lower interest rates than other types of finance.
Still before a secured loan can be arranged, the equity
available in your home will need to be agreed upon by the lender. The lenders
need to be assured that there is in fact equity in your property and that any
loans already outstanding will not interfere with any new arrangement made by
them if they agree to a loan.
After this has taken place, the lenders will put a package
forward which may not necessarily be for the full amount the homeowner wanted.
It is never a good idea to lend more than the property is worth although a few
lenders do, which often causes problems if property prices fall; fortunately
most will only lend to the top value of the property.
When you arrange a loan this way, the lender has a claim on
your home should you fail to meet payments, so only borrow judiciously and
consider your ability to pay it back. Home improvement loans can be a
wonderful way to tidy up an aging home but remember that they need to be paid
off and if you are likely to struggle, reduce the amount you want to borrow.