Choose the right home improvement loan for your situation

Mary started complaining to her husband about things she like in her kitchen.

The disposal leaked,

the flooring was dated,

the pantry was too small,

the silverware drawer wouldn’t open and close smoothly.

You know, all those little things that just grate on you until all of a sudden – you’ve made the decision to remodel the entire kitchen into your dream. This is exactly what happened with Mary and her husband.

A kitchen renovation is a costly (and exciting!) endeavor but Realtors(R) concur it is worth the expense in the overall value of a home. Where does the money come from to do it?

Homeowners immediately think: a loan.

But what kind of loan? This is the question that baffles many.

When we talk to people here at Royal United Mortgage LLC, we hear them say they just want a loan to remodel the kitchen. Sometimes they have heard of second mortgage loans or home equity loans or home equity lines of credit, but they don’t know what they are, so they say they want a home improvement loan.

Many lenders and banks would say, “OK, let’s get started,” and the loan application and process would begin – to obtain whatever loan the lender tells them to get.

That’s not how we think at Royal United Mortgage LLC. We believe that knowing the entire financial picture is how to really help homeowners. Each type of home loan comes with different options;

• length of repayment term (15, 20, 25, 30 or 40 years)
• structure of payment (fixed, adjustable rate, balloon)
• escrow requirements (real estate taxes, homeowners insurance or private mortgage insurance)
• and, of course, interest rates.

Choosing the right loan for the situation is important. The type of loan and the structure of it can alleviate financial concerns – or add to them. We want to help homeowners successfully manage their financial situation. That’s why we want to see the “big picture.”

It’s about more than just writing the check for the remodel and making payments. It’s being able to afford the payments, save money over the life of the loan and, overall, reach your financial goals today and with an eye on the future.

-Elaine of the Royal United Mortgage LLC Blog Team