Even Staff

2016-01-25

Low interest rate loans to fund your home improvements

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.

Disclamer: 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. Although we promote products and services form our partners, our opinions are our own.

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Goldman Sachs-backed Even Financial, a digital matchmaker between banks and customers, just bought an insurance startup as life insurers are seeing policy applications boom

Even Financial has acquired LeapLife, a leading insurtech platform. The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Business Insider wrote an article about it, interviewing our CEO and Founder Phill Rosen.

Even Financial Launches Insurance Offerings With Strategic Acquisition of LeapLife, a Leading Insurtech Platform

Pioneering B2B Fintech Expands its Industry-Leading Financial Services Monetization Platform to Help Insurance Carriers Find and Connect with Consumers New York, New York – April 22, 2020 – Even Financial (Even), the leading API for financial services search, acquisition, and monetization, announced today that it will be launching services for the insurance industry through the acquisition of LeapLife, an insurtech platform and digital life insurance agency.  The addition of LeapLife allows Even to immediately commence its insurance capabilities, aimed at simplifying and enhancing the way consumers search, compare, and get matched with insurance policies (LeapLife’s existing platform will continue to operate from leaplife.com). Even and LeapLife now offer the only full end-to-end, multi-carrier digital life insurance marketplace experience. Over the coming weeks, Even will further integrate LeapLife’s technology and insurance offering into its industry-leading API, making turnkey insurance marketplaces programmatically available to a vast network of channel partners — when and where their consumers are most in need — while also enabling the company to expand to other insurance sectors, including homeowners, renters and auto insurance. This adds to Even’s peerless breadth of real-time, personalized financial product offers — an expansive suite that already includes loans, savings, credit cards, and more.  “Even’s goal to evolve how financial institutions find and connect with consumers is not limited to loans or credit cards, but applicable to all financial products and services, including insurance,” said Phill Rosen, Even Founder and CEO. “Despite its importance, purchasing life insurance is often an overwhelming and inconvenient experience. With more than $600 billion in premiums paid each year, and only 6% of policies sold completely online, we see tremendous opportunities to help modernize the life insurance industry and offer solutions that solve challenges for consumers and carriers alike.”  LeapLife is an established insurtech platform and digital life insurance agency that utilizes data science, deep underwriting knowledge, and proprietary technology, enabling consumers to apply for instant-decision life insurance policies with real-time quotes. LeapLife works with many best-in-class insurance carriers to offer consumers a seamless experience from beginning to end. This approach made Even and Leaplife a perfect match. As a digital insurance broker, LeapLife offers personalized life insurance recommendations based on a consumer’s unique needs. Paired with the Even API, which enables customer acquisition for insurance to be native and programmatic, consumers benefit from a more streamlined, transparent, and highly personalized experience when shopping for life insurance.  Just as Even’s 2018 acquisition of Birch (the award-winning credit card rewards app) allowed the company to accelerate its expansion into credit cards, the addition of LeapLife will similarly put Even at the forefront of consumer insurance offerings.  Charles Svirk of MassMutual Ventures, an investor in Even, said “The Even and LeapLife teams share a vision that the future of insurance acquisition will rely on the power of data-driven, programmatic distribution. We are thrilled to support them as their industry experience, impressive technology, and trusted relationships will help scale Even’s insurance offering and build partnerships to provide these critical innovations in insurance acquisition.” The Even API and platform solve significant, long-standing pain points in financial services acquisition by seamlessly connecting supply and demand. Even has continued its rapid growth trajectory in 2020, surpassing over $1.5 billion in credit issued through its API and expanding its platform to over 400 partners. Even has secured over $55 million in funding from major financial institutions, venture capital firms, and fintechs to back its goal to evolve the financial services acquisition ecosystem.   About Even Financial Founded in 2015, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. By seamlessly bridging financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as TransUnion and The Penny Hoarder) via its industry-leading API, Even turns any consumer touchpoint into an ROI-driven, fully customizable, programmatic acquisition source for financial product offers with full compliance, security, and scale across loans, savings, credit cards, insurance, and more. Even is backed by leading financial services firms and VCs including American Express Ventures, Canaan Partners, Citi Ventures, F-Prime Capital (Fidelity), Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Even is the leading search, comparison, and recommendation engine for financial services. Media Contact: media@evenfinancial.com

Even CEO/Founder Phill Rosen quoted in Protocol Braintrust Newsletter

Our CEO and Founder Phillip Rosen was included in the most recent Protocol Braintrust newsletter along with answers from some thought leaders from Plaid, Slack, and DuckDuckGo!