Loans to reform a homeOn November 10, 2019 by Ana Funchess
Reforming a home is always a headache: works, noise, dust … and if that were not enough, a very important money expense. In fact, sometimes it is a disbursement that cannot be dealt with at once.
Given this reality, there are several entities that have financing products specifically designed for renovations. It is what is called home loan loans, and it is increasingly common to home finance renovations with a 100% product for it and not with a mortgage or a personal loan.
The current supply of these credits is wide, with very competitive interests and conditions. Keep reading and don’t lose detail!
Current loan offer to work at home
- At this time, the cheapest loan is the “Reform Loan” of Better Reforma Bank , which stands at 4.40%. To obtain it, it is not necessary to link with the entity and the repayment term is five years with a maximum financing amount of 60,000 dollars.
- For its part, the Caja de Arquitectos, Arquia, markets the “Rehabilitation Loan” at 5.50% fixed interest over a term of up to five years. Again, a maximum of 60,000 dollars can be requested. Of course, this loan requires the contracting of life insurance that covers the cancellation of the loan in case of death or absolute and permanent disability.
- Likewise, MagicBox offers the “Home Reform Loan” in two modalities. The first, has a fixed interest of 7% and entails linkage (domicile payroll and take out home and other life insurance), being the repayment term of ten years with a maximum amount of 75,000 dollars. In case of not being linked more with the entity, the interest rises up to 9%.
- Another loan to reform the home includes TeachBox Bank. This is the “Home Loan db” at 7.75% interest. To hire it, you have to pay the payroll and take out payment protection insurance, another one for home and one for life. It finances up to 60,000 dollars to be amortized over a maximum period of eight years.
What interests apply?
In a context where interest rates are at record lows, this translates into lower interest rates on loans. In this sense, most of the credits intended for the renovation of a house, as we have seen in the different examples shown above, range between 4% and 9% of fixed interest.
Do they charge commissions?
It is rare for banks to charge fees on loans, except for the opening and cancellation fees. In the case of the opening, the most common, varies between 1.00% and 1.50%. Of course, keep in mind that sometimes it has a minimum cost that is usually around 100 dollars.
How old is the term?
Again, as we have seen in the different examples, the repayment period of the loans is variable, although it is usually between five and ten years.
What amount do they lend?
The amount to be financed is variable. The entities set a minimum that starts over 10,000 – 15,000 dollars up to higher amounts ranging between 60,000 – 75,000 dollars maximum.