Home Renovation Loan
See How Much Equity You Can Access!
Benefits Of Home Renovation Loan
Fast Approval & Funding
Receive your home renovation loan as quickly as 48 hours from the time of application.
What Is A Home Renovation Loan?
Home Renovation Loan Explained
A home renovation or home improvement mortgage loan, is a mortgage loan home owners use to finance repairs or upgrades in their home. Home owners use a home renovation mortgage loan for various reasons including:
- New roof in a house,
- New kitchen and/or appliances
- Upgrading bathroom(s)
- New floors
- Paving a driveway,
- Finishing or upgrading a basement and more.
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How Home Renovation Loans Work
Home Renovation Mortgage Loan Process
Renovation Loan With Mortgage Refinancing
Home owners can refinance their existing mortgage to access the required equity to finance their home reno project. Refinancing an existing mortgage will require the home owner to break their existing mortgage, if they are refinancing their mortgage before the maturity date of the mortgage.
When getting a renovation loan with refinancing an existing mortgage, there are a few things to consider, including the penalty for breaking the existing mortgage, the home owner’s income and credit qualifications to access the desired equity, and the interest rate for the new mortgage, in comparison to the interest rate of the existing mortgage.
What is The Difference Between Refinancing and Getting A Home Equity Loan or 2nd Mortgage For Home Renovation?
Home Equity Loan or Second Mortgage For Home Renovation
Unlike mortgage refinancing, a home equity loans and second mortgages don’t have traditional income and credit requirements, making it much easier for home owners to access home equity for home renovation. Home equity loans and second mortgages are approved based on the equity available in the home, rather than the home owner’s income and credit history.
In many instances, it makes more financial sense to get a 2nd mortgage or home equity loan, rather than refinancing the entire mortgage for any home reno projects.
Home Renovation Loan Rates
What Are Home Renovation Loan Rates?
Home renovation loans with home equity or second mortgage start from 5.49%. Since the approval is based on equity, instead of the borrower(s) credit/income, the interest rate is set based on the amount of equity available in the home. Home owners whom have substantial equity (minimum 15% of the home value), can qualify for lower interest rates, while home owners whom use up most of the equity in the home for home renovations should expect a slightly higher interest rate.
Interest rates for mortgage refinancing are slightly lower than home equity loan or second mortgage rates, as such loans are arranged through the banks or other mortgage lenders whom qualify based on credit and income.