Even Staff

2016-01-25

Low interest rate loans to fund your home improvements

The Inevitable Interest Rate Hike

 

The U.S. Federal Reserve cut short-term interest rates to near 0% in response to the financial crisis of 2008, in order to stimulate the economy by encouraging people to borrow money. Rates have been kept historically low for over 7 years now. Since that time, U.S home prices have clawed their way back and positive data suggests the economy has made a healthy recovery. The economy is “performing well,” Janet Yellen, the Fed chairwoman, said earlier this month, adding that “it could be appropriate” to raise rates at the Fed’s final policy meeting of the year in December.

 

Taking Advantage of Low Rates

 

Higher short-term interest rates will mean the cost of borrowing will be higher. Auto loans, credit cards, home equity loans and mortgages will all be affected by the eventual rate increase. For this reason, the window of opportunity to borrow at low interest rates is closing. One of the smartest ways homeowners are taking advantage of low rates is by borrowing to fund home improvement projects. This is a responsible use of debt as many of these projects add value to your home. In addition, a large portion of the costs can be recouped when you sell your home. Projects like a kitchen remodeling can retain up to 92% of the costs of the project according to a cost vs. value study done by Remodeling Magazine. You can even turn a profit on some projects! Doing something as simple as installing a steel entry door can earn you money, with 101% of the cost of the project being returned at resale. Projects like this one are certainly a wise use of debt.

 

Financing Home Improvements using Alternative Finance

 

Nearly 57% of U.S. homeowners said that they plan to spend money on home improvement projects according to an annual survey by LightStream, an online alternative lender. How do they plan on paying for these projects? More than half say they will tap savings (59%). However a concerning portion (30%) plan to use credit cards to finance their renovation and home improvement projects. Credit cards often charge very high interest making it a costly option. Luckily other cost effective options exist. Alternative finance has seen explosive growth lately and with that, alternative lending has become a popular way to obtain a loan online. Not only is it one of the quickest ways to find a loan, the interest rates on these loans are far more attractive than other financing options. Before you use credit cards to pay for these costly home improvement projects, it's definitely worth checking out alternative lending and comparing rates. Many alternative lending sites offer online tools that help you compare APRs across multiple financing options. It’s important to note that loans found on these sites will also be sensitive to short-term interest rates and as a result will increase when the Fed decides to raise rates in the near future. Therefore, now is a great opportunity to lock in a cheaper APR on a home improvement loan.

 

Bottom Line

 

An improving housing market coupled with the likelihood of an increase in interest rates in the near future make now a great time to borrow and take advantage of low interest rates. One of the more responsible uses of debt is to use it to finance home improvements as many of these projects can add resale value to your home. Furthermore, marketplace lending is a simple and cost-effective alternative to finding a home improvement loan before interest rates across the board inevitably increase.

Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content

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HAVEN LIFE
Haven Life’s All-Digital Life Insurance Application Experience Launches on Even Financial’s Leading Life Insurance Search Engine
Even features the industry’s largest multi-carrier, all-digital life insurance marketplace New York, New York – August 16, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced the launch of Haven Term and Haven Simple on its life insurance marketplace platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services customer acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   With the addition of Haven Term and Haven Simple, Even has further expanded its extensive network of premium life insurance offerings, strengthening its position as the industry’s largest multi-carrier, all-digital life insurance marketplace. Haven Life, which offers Haven Term and Haven Simple, and is backed and wholly owned by Massachusetts Mutual Life Insurance Company (MassMutual), is known for its customer-centric approach and for its commitment to making life insurance more affordable and accessible. Haven Life’s term life insurance offerings will be available on Even properties and via its wholly owned subsidiary LeapLife.   “In these uncertain times, the majority of U.S. adults want the financial security of high-quality life insurance, but are often dissuaded by the complex application process and need to complete an in-person medical exam,” said Phill Rosen, Founder and CEO of Even Financial. “Haven Life’s groundbreaking, all-digital application experience brings tremendous accessibility and peace-of-mind to consumers. We’re thrilled to welcome them to the Even platform.”   The launch of Haven Term and Haven Simple on the Even platform enables consumers to get matched with medically underwritten term life insurance policies that they can apply for and, if approved, purchase instantly online. While most Haven Term applicants will need to take a medical exam, Haven Simple applicants do not. Haven Life’s offerings expand the variety of life insurance options already available to consumers through Even’s API.   “Haven Life is committed to meeting life insurance customers wherever they are — and often, it's where they are managing the rest of their financial life," said Wade Seward, Head of Distribution Strategy at Haven Life. "On the heels of introducing even more affordable pricing for the Haven Term product, our partnership with Even Financial allows us to marry that affordability with greater accessibility to offer comprehensive financial protection to shared clients with ease and efficiency.”    Even entered the life insurance industry in 2020 through its acquisition of LeapLife, a leading insurtech and licenced life insurance agency. Since that acquisition, Even has worked with its large network of channel partners to make the process of getting personalized life insurance fast, easy, and accessible for consumers. In addition to Haven Term and Haven Simple, products offered by leading insurance companies including Lincoln Financial Group, Pacific Life, and Mutual of Omaha are available through LeapLife, Even’s life insurance platform. Companies such as TransUnion and Lantern by SoFi rely on Even’s embedded finance marketplaces to power 100% digital personalized life insurance policy quotes for their customers, with live agent support.   Even has continued its rapid growth trajectory in 2021 by reaching over $3 billion in consumer credit issued through its API and expanding its platform to over 800 partners. Earlier this year, Even was named one of “America’s Best Startup Employers'' by Forbes for 2021 and placed in the Top 50 of the 2020 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world.   About Even Financial   Founded in 2014, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. As the leading search, comparison, and recommendation engine for financial services, Even seamlessly bridges financial institutions (such as SoFi) and channel partners (such as TransUnion) via its simple yet robust API and embeddable solutions. Even turns any consumer touchpoint into a comprehensive financial services marketplace with full compliance and security at scale. The company is backed by leading financial services firms and VCs, including American Express Ventures, Canaan Partners, Citi Ventures, Fidelity’s F-Prime Capital, Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Learn more at www.evenfinancial.com.   About Haven Life Insurance Agency   Haven Life Insurance Agency, LLC (Haven Life) is re-thinking how people financially protect the ones they love. Haven Life is committed to delivering exceptional products, delightful purchasing experiences, and meaningful moments of service to the modern life insurance customer. Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY), and California (DTC-CA), and other states, it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.    Policy and rider form numbers and features may vary by state and may not be available in all states. Haven Term is available through Haven Life Insurance Agency, LLC (Haven Life), whose agency license number in California is OK71922 and in Arkansas, 100139527. Both Haven Life and C.M. Life are wholly owned subsidiaries of MassMutual.   Please note that issuing the policy or paying its benefits depends on the applicant’s insurability, based on their answers to the health questions in the application, and their truthfulness.   MassMutual and its subsidiaries C.M. Life Insurance Company and MML Bay State Life Insurance Company are rated by A.M. Best Company as A++ (Superior; Top category of 15). The rating is as of June 1, 2021 and is subject to change. MassMutual has received different ratings from other rating agencies.   Media Contact media@evenfinancial.com    
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Yahoo! Finance: Even Financial Reaches $3 Billion In Credit Issued Milestone
Even has surpassed a significant threshold in credit issued, having now facilitated over $3 billion in consumer credit as of July 2021. The milestone is significant in the financial services industry, as Even has also expanded its platform to over 800 partners.    Click below to read more at Yahoo! Finance.
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PYMNTS: Even Launches Embedded Finance App on Salesforce
Now, financial advisors and other businesses will have a way to leverage Even’s platform for their clients. ‘Financial Products for Salesforce’ - Powered by Even, a plug-and-play app available on the Salesforce AppExchange, matches consumers with real-time, personalized financial product offers.   Click below to read more at PYMNTS.com.