If you're planning a costly home improvement project, consider getting a Colorado home equity loan. This loan acts like a second mortgage and the payment plan is set up similarly. You get your money in one lump sum and you can spend it however you like. You simply pay it back in monthly installments over the term you've agreed to. Terms are usually five, 10 or 15 years long.

The upside to this loan is that the interest rate is fixed. The downside is that an appraisal of the home is usually needed and sometimes lenders require you to pay closing costs. Despite this, the best way to finance your project is to get a home equity loan in Colorado. Here are a few tips to help get you started.

1. Make your first stop your local bank when getting a home equity loan in Colorado. Consider lenders you've already established a rapport with.

2. Apply online at a Colorado home equity lender. This really speeds up the process.

3. Check out the going Colorado home equity rate. This knowledge will assist you in negotiations when applying for your loan.

Action Steps
The best contacts and resources to help you get it done

Find a lender of home equity loans at Colorado banks in your neighborhood

It's very convenient to get your loan from an institution you already bank with. If you've already put your trust in your bank or credit union, you can be sure their loan officers will give you the best service.

I recommend: Colorado State Bank and Trust offers two different types of home equity loans; they also offer a Colorado home equity credit line if that interests you. See if there is a Valley Bank & Trust branch close to your home; they have 12 locations in Colorado.

Apply online for a Colorado home equity loan

Many lenders offer online applications to simplify the process. If you're short on time, fill out your information online and submit it to the bank for approval.

I recommend: Apply online for a loan from FirstBank. Obtain quotes from several Colorado mortgage brokers using the application at PersonalHomeLoanMortgages.com.

Determine the usual Colorado home equity loan rates

In order to know if you're getting a good rate, you should look at a few banks' websites to find out what their lowest rates are so you can negotiate the rate you're offered.

I recommend: Get the rates of various Colorado lenders at Mortgage101. Fill out a simple form at MortgageLoans.com to find rates for home equity loans in Colorado.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Sometimes it's better to go with a Colorado home mortgage refinance loan instead of using a home equity loan. You can also consider a home equity line of credit. Colorado banks offer many options.