Home Renovation Loan Interest Rate
The less interest you pay, the more home renovation loan you can afford. An adjustable-rate mortgage is one way to lower that rate. Because lenders aren't locked into a fixed rate for many years, they start off with much lower rates. Most have yearly caps on increases and a ceiling on how high the rate climbs. But if rates climb quickly, so will your payments. The longer the loan, the lower the monthly payment. But total interest is much higher. That's why you'll pay far less for a 15-year loan than for a 30-year loan if you can afford the higher monthly payments.