 TITLE: Best Personal Loans for Home Improvement CONTENT: Financing Your Home Improvement: Home Equity vs. Personal Loan\n--------------------------------------------------------------\nHome equity loans or lines of credit and personal loans are popular ways to finance a home improvement project.\n*   If you've built equity in your home, you may be able to take out a home equity loan or home equity line of credit (HELOC). These are second mortgages that use the home as collateral, which can make it easier to qualify for a large loan amount at a low rate. A cash-out refinance, which replaces your existing mortgage with a new, larger loan, is also an option. These loans may offer a long repayment term and low monthly payments.\n*   Alternatively, you could consider taking out an unsecured personal loan. With these loans, you don't have to risk your home by putting it up as collateral, and you may qualify even if you haven't built a lot of equity in the home. However, you may need good credit to qualify for a low rate or large loan amount, and the monthly payment could be high if there's a short repayment term.\nEquity and credit aside, the type of project you're taking on could also influence your decision.\nThe interest on a home equity loan, HELOC or cash-out refinance may be tax-deductible if you use the proceeds to substantially improve your home. For example, the interest may be deductible if you use the money to build a room addition, but it won't be if you're doing repairs that simply maintain your home's condition.\nThere are limits on how much interest you can deduct. And, even if your project qualifies, most homeowners don't benefit from the deduction because they use the standard deduction, and mortgage interest is an itemizable deduction. If you do itemize your deductions, keep this in mind as it can impact your overall cost. END