Hi all,
I am doing a major kitchen renovation. I will be able to pay 70-80% of the total cost with my own money. The contractor I am working with does not offer financing.
I went to my local bank and they offer a personal loan at 10-14% APR (too high) or a home equity loan. There are two types of home equity loans:
HELOAN: It is a fixed rate and I can pick the term of which I want the loan for (5, 10, 15 or 20 years). The average APR is 5.24 to 5.84%.
HELOC: Home equity line of credit. It is a 20 year line of credit where the first 10 years I would be paying interest only, then the next 10 years I would pay interest plus principle.
Out of the three options, the HELOAN seems most favorable. I also talked to my local credit union but they only offer up to 5K at 6.99% APR.
I was wondering if there is anything out there that offers some sort of payment plan at 0% APR (unless I miss a payment) and then would be hit with interest. I never miss a payment and have a good credit score (currently 782). Are there any credit cards or other types of loans that offer 0% APR or at least lower than 5%?
Not sure if it helps but my current mortgage is 3.75% APR and my car loan is 2.49% APR. I'd love to find something similar or if by miracle, a 0% APR if I can find a payment plan option where I'd have to pay it off by X number of months.
EDIT: I want to clarify that I am not considering ALL of the options I listed. I am simply stating what the bank offered me. I am definitely NOT going to do a personal or HELOC loan. Those two options are insane. HELOAN is reasonable but I am exploring if there are better options out there.
EDIT2: I can definitely afford a kitchen remodel. I just do not want to spend all of my own money upfront as I'd like to have some leftover emergency savings. All I am asking you is if you are aware of any attractive loan options that I may not be aware of other that what my banks offered.
Submitted May 03, 2019 at 09:50AM by rjr3790 http://bit.ly/2V9Fnqu
