Why use home improvement financing instead of home equity loans or credit cards
Home equity loans can have lower interest rates — but require lots of paperwork, an appraisal and have a lengthy approval process. And new homeowners may not have enough equity built up in their homes. Credit cards can have higher interest rates, but are fast and easy to use. However, credit card payments spread over longer periods of time may dramatically increase the total cost after interest.
Interest rates for home improvement loans typically fall in the middle — and the process is fast, easy to apply for and offers long-term repayment options.