Financing

With the growth of real estate values most homes have equity. In most cases sufficient equity to finance home improvement and remodeling projects. Lenders are inclined to lend against the equity of a home, particularly if the money is to be invested in the property and thereby increasing the value of the property.

Financing institutions each have their own criteria for home improvement loans and some offer a variety of loan packages. Depending on current interest rates and the rate you are paying on your existing mortgage, you may even want to consider refinancing your entire mortgage and build in enough for the improvements.

Home Improvement Loans

Home improvement loans, often referred to a s equity financing, are generally offered at higher interest rates than the primary mortgage rates. These home equity loans are typically offered for shorter terms. Choose a personal home improvement loan when you plan to pay it off in a relatively short period of time.

A home equity line of credit works similar to a home equity loan except that you only draw the money as you need it. You can take out up to the approved maximum and your payment will be based on the amount you have actually acquired.

Refinancing

A second option is to refinance your existing mortgage and add in the costs for remodeling and home improvement. Choose this option if the current interest rates are lower than your existing mortgage loan rates or if you wish to spread the payments for home improvement over a longer period of time.

Lenders

Shop around and ask lots of questions when looking for a home equity or mortgage loan. Lenders charge varying fees for application processing fees, closing costs, document transporting and other miscellaneous fees. Find out what they are in advance and compare one lender to another. Interest rates vary as well so look at the combination of fees and interest to determine the total cost of the home improvement loan package.

Use our Mortgage Calculator to determine the interest cost based on your home equity loan interest rate and to define the total home equity mortgage cost.

LENDERS

Irwin Home Equity
American Equity
Wells Fargo Home Equity Loans
Countrywide Home Equity Loans
Global Equity Lending
Chase Home Equity
Washington Mutual Home Equity Loans

Related Books & Publications

Related Websites

Freddie Mac - Home Loan Assistance

Resources

Related Subjects