LendingTree vs Credible

Continued from above...

If you have little equity in your home - in other words, you haven't made many payments on your mortgage yet, and you didn't put down much money at closing - you'll most likely use a home improvement loan to fund your projects. These loans are based on your overall credit history; the higher your credit score and the lower your debts, the better rates and terms you'll get.

On the other hand, if you've built up equity in your home, you'll be able to access three other types of home improvement loans: cash-out refinancing, a home equity loan (HEL), and a home equity line of credit (HELOC). Each type has its ins and outs, and not every loan type is appropriate for a particular borrowing need. For example, a cash-out refinance is great if you can reset your mortgage at a much lower interest rate - but it also comes with closing costs (which can sometimes be rolled back into the loan amount). HELOCs let you take money out as-needed, but interest rates can be higher than some home equity loans and are often adjustable: your payments may increase in the future.

As you can see, choosing a home improvement loan leaves you with some research to do. While considering your options, here are some guidelines to help clarify which service you should use:

• Loan Amount. How much money can you borrow? Some lenders offer loans up to $100,000, while others cap their limit at $35,000 - or lower. Can you get all the money you need from the lender you choose?
• Loan Terms. How much will you pay in interest for your home improvement loan? How long will you have to repay the total amount borrowed? Are there any origination fees, prepayment penalties, or other costs?
• Transparency. How much does the company tell you upfront about their loans? Is it easy to get a quote without a credit check? Does the provider tell you how much you should expect to pay in fees, their average interest rates, and their minimum eligibility requirements?
• Direct lender or referral service. Some home improvement loan companies offer you funding directly, while others have partnerships with lenders and let you compare offers. A referral service is an easy way to compare loans and terms, but you may be spammed for weeks with annoying emails and calls from lenders.
• Reputation. What do other homeowners have to say about the experience of getting a home improvement loan through the service? Is help readily available from knowledgeable company reps? Has the Better Business Bureau given the provider a strong rating?

TopConsumerReviews.com has evaluated and ranked the best options for home improvement loans available today. We're confident that this information will help you get the money you need for your next big project!