March 12, 2010
Improve Your House with a Peer to Peer Home Improvement Loan
The recent phenomenon of upside down home loans means that, through no fault of their own, many homeowners have little to no equity in their homes and therefore can’t take out a home improvement loan for needed repairs or updates, but there is a new solution.
That way out is peer to peer loans. For those not familiar with peer to peer lending, think of it as the Ebay of the lending world, where lenders bid on lending to borrowers who need money. What happens is that banks and other institutional lenders are eliminated so that the lender can earn more money and the borrower can pay less.
The great thing for many homeowners fenced in by falling housing values is that peer to peer loans do not use the house as collateral for the loan. This unique solution can give homeowners the opportunity to obtain that needed home improvement loan and add the addition, install the new kitchen appliances or energy efficient windows he has been thinking about.
Home improvements are a great investment, because the value of your home will increase if you have an updated kitchen or an additional bathroom, and you can enjoy these benefits even before you sell your home. In addition, there are other home improvements that save the homeowner so much money that they are self funding even as you enjoy them, such as high efficiency appliances, high energy rated furnaces or water heaters, new insulated windows and doors, etc. With today’s high cost of energy, high efficiency or energy saving devices can save hundreds of dollars in costs per month.
The process of applying for a peer to peer loan is very simple and easy. Peer to peer lending sites are specifically planned to make the process easy for the borrower and for the lender alike. All the borrower needs to do is 1) Create a loan listing 2) Put the listing on the site for auction 3) Watch as lenders bid for their loan. Business is still business, so your credit rating will continue to have an impact on your loan rate, but lenders are able to accept lower rates because there is no bank in the middle taking a piece of the profit.
There are lenders of all sizes on peer to peer loan sites, but historically, loans in the range of $1,000 to $15,000 are the most desired among bidders. This is just perfect for home improvement loans, which usually run the gamut from about $1,000 for a new shower or bathtub, to about $15,000 for a kitchen remodeling.
More information about peer to peer lending at engagement ring financing or maybe a loan for home improvement loans
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