Home Equity Loans

The best type of loan for home improvements is either a personal loan or a home equity loan, depending on things like the amount of funding you need and whether you're willing to risk your home as collateral. Both of these types of loans allow you to use the money for nearly any expense, including home improvements.

Best Types of Loans for Home Improvements

To use a home equity loan for debt consolidation, first tally up the total amount of debt that needs to be consolidated, then take out a home equity loan for at least that amount, and use the money to pay off the original debts. This process will leave only one debt – the home equity loan – with one monthly payment. In other words, all of the other debts will be “consolidated” into the home...

You can get a small home equity loan. $10,000 is typically about the smallest amount you can get. Each bank has a minimum home equity loan amount, which varies from one bank to another.