Personal Loan for Home Improvement?

Discussion in 'Off-Topic' started by Kailyn Alfson, Dec 13, 2015.

Thread Status:
Not open for further replies.
  1. Kailyn Alfson

    Thread Starter New Member

    Dec 11, 2014
    5
    1
    I have been looking into the possibility of filing a loan for the purpose of home improvement. I have a few details to improve including cabling and the possibility of putting up solar panels for energy conversation. I am uncertain if this could be enough reason to file a loan. Any thought? Or are there anyone who happened to underwent the same situation whether filed at the bank or another private loaning firm?

    Mod note: moved thread to Off Topic
     
    Last edited by a moderator: Dec 14, 2015
  2. Papabravo

    Expert

    Feb 24, 2006
    10,148
    1,791
    Your reasons for getting the loan are mostly irrelevant. What is important is the amount and stability of your income along with what you might offer as collateral. The interest rate and fees that you pay will be two to three times the amount you would pay for a mortgage, but should be one-half to one-third of a standard 18%/year credit card. It is easy to get lured into an arrangement where if you don't perform precisely to their terms they will aggressively harass and pursue you day and night, evenings and weekends. I don't know your personal financial circumstances so it would be presumptuous of me to offer specific advice.

    I did get this type of loan from a bank in 1981 to purchase a Tektronix Oscilloscope for $2475.00 over 12 months. The interest rate was about 10%, and the scope itself was the collateral. My annual income then was about twice the value of my condo which I bought in 1972. In April of 1982, the company I worked for declared bankruptcy after burning through $22 Million in VC money. My employment and income came to an abrupt end. Fortunately I had discharged my loan in March. Over the next nine months my liquid assets were reduced to the low two figures.
     
    Last edited: Dec 14, 2015
  3. MikeML

    AAC Fanatic!

    Oct 2, 2009
    5,450
    1,066
    If you think that reduction of your electric bill generated by installing solar is going to generate the cash flow to payback the loan, call a solar company company.

    IMHO, those deals do not pass the smell test if you take away the government tax incentives.
     
  4. Papabravo

    Expert

    Feb 24, 2006
    10,148
    1,791
    That's a great point Mike. I don't think I've ever done anything purely for tax reasons, including buy a home or start an IRA. I know there are people that do this, but I need more justification.
     
Loading...
Thread Status:
Not open for further replies.