Home Improvement Loan

Boost the value of your property

By investing back into your home you can improve your quality of life and raise the overall value of your property. Put the equity in your home to work for you! It is very common for people to only keep their homes for 3 to 5 years.

Home improvements are a great way to boost your property value in a relatively short time period and ensure a higher resale value.

Income property

If you are not going to sell, just move out and use this home as an income property. You can use the improvements you have made to justify charging higher rent. When home improvements are planned correctly, the outcome is positive in so many different ways.

Loan to Value

To be able to take cash-out of your home for home improvements, you will need to estimate how much equity you actually have. To do this you will need to come up with your Loan to Value (or L.T.V).
You can determine your L.T.V. by dividing your total loan amount you intend to borrow, by the total market value (or current appraised value) of your home.

You will then come up with your L.T.V. If your L.T.V is under 65% you will be in the best possible tier. After 65% the tiers go up in 5% increments, (70%, 75%, so on).

Above 80% L.T.V loans available may have added Private Mortgage Insurance or P.M.I. That will all depend on which program you choose. But at 95-100% L.T.V, you are limiting your options, and having good qualifications are going help you borrow the money you need.

Second mortgage

There are many different ways you can take out the equity in your home.
One way would be a taking out a second mortgage. With a 2nd mortgage you will not change your first loan.

Home Equity Line of Credit

An additional way you can take out equity would be a Home Equity Line of Credit (or H.E.L.O.C.).

The most common H.EL.O.C., would be a 10 year interest only, with a balloon payment due at end. Normally a person would keep this type of loan for a short term and then refinance, pay off the loan or sell the property.

Even another way to take out equity for a home improvement would be just to refinance what you have and increasing the total loan amount to cover what you need for your improvements.

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Keep it simple, if you can qualify, one loan with one interest rate and one monthly payment can dramatically help keep your monthly bill lower.