Is the renovation loan cost-effective?
1. Borrowing money: As far as borrowing money is concerned, borrowing money from relatives and friends is a good choice, but if relatives and friends are short of money or temporarily inconvenient, it is not a good choice. The most important problem is that if the matter of borrowing money is not handled properly, the relationship between relatives and friends will be alienated.
2. Reduce the decoration standard: Although the problem of decoration budget can be solved, the quality after decoration may not be so satisfactory. It may lead to lower decoration quality, frequent home improvement problems and even family conflicts.
3. Decoration loan: First of all, you can borrow the money you need, which saves the trouble of human feelings compared with borrowing money from relatives and friends. At the same time, you can use the loan money to decorate, let the loan money flow and make your house better decorated.
Based on the above decoration financing methods, decoration loans are more appropriate.
Which way is the decoration loan good?
1. Pure credit decoration loan: As the name implies, there is no need for mortgage and guarantee, only materials such as identity certificate, income certificate and address certificate are needed. This kind of loan is suitable for workers with stable income and good credit record.
Advantages: the optional quota is flexible, convenient and fast; Disadvantages: The interest rate is higher than the mortgage loan, which requires higher personal qualifications and the amount is relatively low.
2. Mortgage decoration loan: The applicant is required to use the renovated house as the mortgage, and the user is required to provide ID cards, household registration books, real estate licenses and other documents. With the house as the mortgage, the decoration loan can be obtained, up to 70% of the appraised house price.
Advantages: the interest rate is relatively low; Disadvantages: Some banks do not accept mortgaged houses as collateral to apply for mortgage loans.
3. Credit card installment payment: it is a new decoration loan model that has emerged in recent years. Many banks carry out related credit card business. Banks pay the decoration consumption funds to the merchants in one lump sum, and then let users repay them to the banks in installments. This kind of loan is mainly aimed at people who live in large and medium-sized cities, just bought a new house, are short of money for decoration and have a good credit record. The limit is generally 10 to 200,000.
Advantages: low entry threshold, no mortgage; Disadvantages: Limited decoration companies to choose from and low loan amount.
In fact, there is no difference between cost-effective and cost-effective decoration loans. As long as you can accept the interest rate of the decoration loan, it is cost-effective. This is the whole content of this article.