Personal Loan Question

taebin

taebin

Same trailer, different park
946
394
For a personal loan (unsecured) from a financial institution, what is the norm for interest rate on high credit (740+)?

What would be my best bet? I've priced Wells Fargo (7.99%) @ 60 months and USAA (8.99%) at 72 months. Would I see much better at Navy Federal Credit Union, Pen Fed, etc?
 
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Gadrel_sl

shitlord
465
3
8% ish is standard for unsecured loans with high credit. I have one, but I only use it for overdraft protection. Can you get a home equity line instead?
 
taebin

taebin

Same trailer, different park
946
394
Just bought a house, put 5% down. All home equity lines I've looked at require at least 20% equity in the house. Looking to do $40k'ish in remodels, would improve value by $70-80k.

I've heard that credit unions are the best. Just wasn't sure which one to go with and if their rates would be markedly better than WF or USAA.
 
Jysin

Jysin

Ahn'Qiraj Raider
6,275
4,027
Unsure if you are actually a member of Navy Federal? They used to only allow deployed military, then changed to all military, then I think even opened to family of military. Anyway, their rate doesn't seem to be all that great.

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taebin

taebin

Same trailer, different park
946
394
My dad was navy, grandfather air force. How I have access to USAA
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Gadrel_sl

shitlord
465
3
taebin_sl said:
Just bought a house, put 5% down. All home equity lines I've looked at require at least 20% equity in the house. Looking to do $40k'ish in remodels, would improve value by $70-80k.

I've heard that credit unions are the best. Just wasn't sure which one to go with and if their rates would be markedly better than WF or USAA.
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I would be really surprised if you receive $2 for $1 on a home remodel. That might happen if you purchased way below market and need to remodel to improve marketability of the property. But if that were the case you would have equity and wouldn't need an unsecured loan...
 
taebin

taebin

Same trailer, different park
946
394
Purchase price on house was $11k under current appraisal. Great neighborhood, great school district, low housing supply, but house was built in 1964 so everything is outdated. Comps in the area that are updated are selling for $60-70k more. Just going off what appraiser / realtor is telling us. Not really looking to flip, just want the investment back when we do eventually sell. And possibly dropping MI right off the bat if it appraises for 20% more than what we bought it for after updates.

Anyways, if 8% ish is standard, will go with that.
 
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Gadrel_sl

shitlord
465
3
Good luck. Having renovated many many properties, it always costs 50% more and takes twice as long as you think it will.
 
BrutulTM

BrutulTM

Good, bad, I'm the guy with the gun.
<Silver Donator>
14,454
2,240
Make sure you're not spreading yourself too thin. If you just bought the house then you probably haven't even gotten to some of the expenses that come with being a homeowner (repairs, etc.). The idea that the money is going to come back due to increasing home value is kind of deceiving because it's only true when you sell the house, and after you sell the house you still have to live somewhere. On top of that, you are not really just spending 40K, you are borrowing the money at a relatively high rate so interest is going to eat up a healthy chunk of your "profit". Looking at your primary residence as an investment is not a great way to manage your money. Maybe hold off for a couple years and try to save some money and pay cash or at least partially? If you can't do that then you probably couldn't afford the remodel in the first place.
 
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