 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: What to Consider Before Getting a Home Improvement Loan\n-------------------------------------------------------\nWhen deciding if a home improvement loan is worthwhile, consider:\n*   **Project cost**: Get estimates for materials and labor. If the project is relatively inexpensive, could you take some time to save money and pay cash instead?\n*   **Your equity**: The amount of equity you have in your home often determines how much you can borrow. Real estate websites or local realtors can help estimate the value of your home. Subtract what you owe on your mortgage from the value of your house, and you'll get an idea of how much equity you have.\n*   **Your budget**: If you're looking for a loan with low monthly payments, you'll generally have a longer repayment term. Take into consideration the loan term you'll need and how much it will cost you in interest.\n*   **Your debt-to-income ratio (DTI)**: DTI measures how much of your gross monthly income goes to pay debt. Lenders typically prefer a DTI of 43% or less.\n*   **How long you'll be in the home**: If you expect to move within five years, a big project may not be worth the cost. Major home improvements make more sense if you plan to stay put for five years or more. END