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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"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

Mike Doniger
Head of Business Development and Partnerships

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Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
EVEN
Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
New York, New York – June 2, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced a new partnership with Figure to launch the company’s personal loan products on the Even platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   Figure is a fintech company that leverages AI, blockchain, and analytics to deliver innovative consumer financial products with speed and ease. Figure has dramatically decreased the time it takes for consumers to secure loans and has significantly reduced the costs associated with loan origination, servicing, financing, and capital markets execution. The company was founded in 2018 to unlock new access points for consumer credit products that can transform the financial lives of its customers. In addition to personal loans, it provides mortgage refinancing and home equity release solutions, including home equity lines of credit, home improvement loans, and home buy-lease back offerings for retirement.   Figure is an exciting, advanced provider that is driving transformational change in consumer credit,” said Phill Rosen, Founder and CEO of Even Financial. “We’re thrilled to welcome them to Even’s unparalleled network of loan products.”   Shwetabh Gautam, Director of Financial Institution Partnerships at Even added: “We continue to see a strong resurgence in the demand for lending products across the millions of consumers Even surfaces offers for each month. The addition of cutting-edge partners like Figure strengthens our ability to connect consumers with the loans best suited for their unique needs.”   Even offers the largest network of premium, API-connected loan providers. Enterprises and established publishers such as MoneyLion and TransUnion partner with Even to power financial product offers for loans and other financial services including insurance, credit cards, and savings. Within loans, Even continues to expand its vast offering, recently launching products for secured lending, line of credit, and auto refinancing.   The launch of Figure on the Even platform enables consumers to get matched with personal loans of up to $50,000. Figure offers a 100% online application that allows applicants to apply and see their rate in minutes and access funding in as few as two days.   “Phill and the team at Even share our vision of leveraging blockchain technology to make financial services simpler, faster, and personalized. Through the Even platform, we will be able to reach a broader and more diverse set of consumers seeking our innovative credit products,” said Brad Simmons, CMO of Figure.   Even has continued its rapid growth trajectory in 2021, facilitating over $3 billion in consumer credit issued through its API and expanding its platform to over 400 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 (including American Express, Goldman Sachs, and SoFi) and channel partners (such as MoneyLion and 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 Figure Figure is transforming the trillion dollar financial services industry using blockchain technology. In three short years, Figure has unveiled a series of fintech firsts using blockchain for loan origination, equity management, private fund services, banking, and payments sectors – bringing speed, efficiency, and savings to both consumers and institutions. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO. Learn more at www.figure.com.   Media Contact media@evenfinancial.com
PYMNTS: Even Launches Embedded Finance App on Salesforce
PYMNTS
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.
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
FORBES
Even Named to Forbes’ List of “America’s Best Startup Employers” for 2021
After evaluating 2,500 American startups with at least 50 employees, Even has been named in the Top 500 of Forbes’ second annual list, which recognizes companies that stand out in: employer reputation, employee satisfaction, and growth.   Click below to see full listing.