 TITLE: How to Finance Your Next Home Improvement Project CONTENT: How to Get the Right Loan for Your Home Improvement Project\n-----------------------------------------------------------\nThere's no single best way to finance home renovations, so it's important to know what you want and your plans to pay off the debt.\nIf you know you'll be able to pay off the new loan in a relatively short period of time, it may be better to opt for a home equity loan or HELOC, which will provide cheaper rates than personal loans.\nIf, however, you also want to refinance your mortgage to take advantage of lower mortgage rates, it may make sense to do a cash-out refinance and stick with one loan instead of two.\nThat said, any of these loans can have serious consequences if you're unable to repay them on time. And if you have fair credit, you may have a hard time qualifying for a low rate, if at all.\nIf you want to avoid the negative consequences of a loan secured by your home or have fair credit, a personal loan may be your best bet.\nRegardless of which loan you choose, it's essential to take the time to shop around to get the best deal. If you're looking to do a home equity loan, HELOC or cash-out refinance, start by checking with your existing lender to see what terms they can offer.\nDepending on your overall relationship with the lender, you may qualify for special terms or discounts. Even if you do, compare the offer with other mortgage and home equity lenders to see what terms and features they bring to the table. Specifically, look at interest rates, fees, closing costs and repayment terms.\nIf you're looking for a personal loan, compare terms from traditional banks, credit unions and online lenders to determine which offer is best. Many lenders will allow you to get prequalified and review your offer without officially applying for the loan.\nUsing Experian CreditMatch, you can do this with multiple lenders at once. This process usually requires just a \"soft\" credit check, which doesn't affect your credit score.\nIn addition to checking interest rates, also look at whether the lender charges an origination fee or a prepayment penalty. Also, consider how long each lender will give you to repay the debt and whether you can afford the monthly payments. END