 TITLE: Is Getting a Home Improvement Loan Worth It? CONTENT: What Kind of Home Improvement Loan Should You Get?\n--------------------------------------------------\nThere are many home improvement loan options, each with their own pros and cons.\n*   **A cash-out refinance** replaces your existing mortgage with a larger mortgage; you receive the difference between the two, minus closing costs, in cash. You can generally borrow 80% to 85% of your home's value, and may also be able to lower your mortgage interest rate and reduce (or extend) your loan term. Interest may be tax-deductible.\n*   A **home equity loan** uses your equity as collateral. You can usually borrow 75% to 85% of your equity and repay it in fixed monthly installments over five to 30 years. Interest may be tax-deductible.\n*   **A home equity line of credit (HELOC)** uses your equity as collateral, but instead of receiving a lump sum, you get a credit line to draw from as needed. You can typically borrow 60% to 85% of your equity; interest may be tax-deductible.\n*   **Personal loans** are usually unsecured, so you don't need equity and you won't put your home at risk. However, personal loans generally have higher interest rates than secured loans and a shorter repayment period; interest isn't tax-deductible.\nMortgages, home equity loans and HELOCs usually charge lower interest rates than personal loans, but if you don't repay them, you could lose your home. If you don't want to use your home as collateral, consider a personal loan.\nOnline lender SoFi offers unsecured personal loans up to $100,000, enough for even major home improvements. Loans have fixed interest rates, no origination fees and repayment terms from 24 to 84 months. You'll need a high income, low DTI and good to excellent credit to qualify.\nIf your credit is only fair, online lender Avant offers unsecured personal loans up to $35,000 with repayment terms of 24 to 60 months and competitive interest rates. (The company also offers secured loans of up to $25,000 using the borrower's vehicle as collateral.) An administrative fee of up to 4.75% of the loan amount could add up, and the annual percentage rate (APR) can be up to 35.99% depending on your credit. END