CITY OF CLEVELAND

DEPARTMENT OF COMMUNITY DEVELOPMENT

Financing Your House Repairs

Does it matter who finances my house repairs?

You bet it does...

Compare the difference in:

              • Interest Rate
              • Fees
              • Terms

For example, a $12,000 HOME IMPROVEMENT LOAN

LENDER A
Interest Rate 8%
Fees $1,200
Term 5 years
Monthly Payment
$243.42
Total Payment
$14,599.20
Total Cost
$15,799.20
   

LENDER B
Interest Rate 13%
Fees $2,700
Terms 5 years
Monthly Payment
$273.04
Total Payment
$16,382.40
Total Cost
$19,082.40
   
DIFFERENCE IN:
Monthly Payment
$29.62
Out of Pocket Expenses
$1,500.00
Total Payment
$1,283.20

What should you know?

An interest rate can be the same for the entire loan (fixed) or change (variable); the lower the interest rate the lower the monthly payment; fees and other costs vary with the lender, and special financing programs exist within the City of Cleveland.

Ask about:

  1. Interest rate, if the rate is fixed or variable, and the APR (Annual Percentage Rate)
  2. The options for the length of the loan
  3. The monthly payment
  4. The total cost of the loan
  5. If any fees can be waived and are they refundable
  6. If there are any discounts for which you qualify

How do you select a lender?

There are different types of lenders. These include commercial banks, savings and loans, mortgage brokers, and finance companies. Each has their own terms and conditions. You can pay more money to finance the same repairs. It pays to shop.

Are all loans the same?

There are different types of loans available for housing repair including:

    1. Home equity (lump sum or line of credit)
    2. Home improvement
    3. Purchase/Rehabilitation
    4. Signature loans

All have pluses and minuses, so make sure you understand the differences.

Are there any special loans offered in Cleveland?

There are special home improvement products offered in the City of Cleveland. For more information contact banks and savings and loans, nonprofit organizations in your neighborhood, and the City of Cleveland's Division of Neighborhood Development.

Do not assume that you do not qualify for the loan. Check more then one source. Request an explanation for why you were turned down, including your credit score and what factors were considered. If you believe you were turned down unfairly, ask for a second opinion or complain to the manager or bank regulator.

How can you get assistance?

Consumer credit counseling agencies, neighborhood and nonprofit organizations offer programs to help you understand the loan approval process and how you may qualify.

The following lenders have agreements with the City of Cleveland to provide products and services to Cleveland residents. They can assist you In obtaining a loan or answering questions for you about the loan process.

Visit the branch closet to you or call:
LENDER CONTACT PHONE
KeyBank ------------------- 1-800-Key2You
Firstar Loan by Phone 1-800-274-4111
Fifth Third Ed McNarmara 216-274-5569
Huntington Ray Oliverio 216-515-6554
Bank One ------------------- 1-800-800-5626
First Merit ------------------- 1-888-554-4362
Charter One Michael Lisman 216-781-3467
National City Bank   Available at each branch

Also, contact the City of Cleveland Division of Neighborhood Services at 216-664-2045 for information about City programs and services.

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