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.
- 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.
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