Things to Think About Before Financing a Home Improvement

With Goldman Sachs’ newest loan product, the money-center bank is making a smart bet.  Goldman Sachs announced Tuesday that it will begin offering home improvement loans through its consumer-focused subsidiary. Borrowers can get loans in amounts ranging from $3,500 to $40,000 for a period of three to six years.

Personal loans like Goldman Sachs’ offering could make more sense these days; with the tax legislation signed by President Trump in December, which eliminated deductions for second mortgages, home equity loans and home equity lines of credit.

Things to Think About Before Financing a Home Improvement | Utah LIsting Pro | Home Improvement Loans, Financing Renovations, Financing Options

Other Options:

  • For some, home equity loans could still be the better option; home equity lines of credit are a more flexible option for borrowers….more options for repaying the loan and flexible interest rates.
     
  • Cash-out refinances: who do they work for? The old mortgage interest deduction can still apply, but homeowners may want to think twice before refinancing, particularly as interest rates rise.
     
  • Keep your emergency fund and 401(k) in mind. Financial planners generally recommend that households have enough cash saved to pay for six months minimum of expenses in case of emergency.

For more smart financial news and advice, head over to MarketWatch in Real Estate News.