Compare Home Improvement Loans

  • Refinance
  • Home Purchase
  • Home Equity
  • Debt Consolidation

Powered by SecureRights™
Include 1st & 2nd mortgages plus any equity loans or credit lines
Powered by SecureRights™
Powered by SecureRights™
Powered by SecureRights™

Home Improvement Loans

Home Improvement Loans are home loans used to finance improvements on your house or property. These loans are used to maintain or increase the value of your home. This can include repairs, a new kitchen, a new bathroom, an extension or general property improvements. Landscape improvements and swimming pools can also in many cases be considered home improvement. Generally, all actions that can be considered to increase the value of the property in such a way that it increases the expected sales value of the home or the property are to be considered home improvements.

Loan Types

There are several different loan and financing types available

Before considering the loan options you should have a detailed plan for the home improvement you intend to carry out. In this plan you should include both the calculated and estimated costs for the improvements, but also the value improvements you are expecting. In a later stage you will in many cases be required to present this information to the lender, therefore you should also get estimates and quotes from contractors.

Questions to ask yourself

  • Are the improvements you plan to undertake increasing the value of your home more than the loan you apply for?
  • What will the monthly payments be?
  • What are the tax implications? Possible tax deductions?

First mortgage loans

Typically home improvement loans are given against your first mortgage by your current lender. Discuss the terms and conditions with the lender you already have, but be sure to get other quotes and to make a detailed comparison of your different options. Most commonly the loan is extended for the remaining period of the original mortgage, but you will have to discuss the terms in detail with your mortgage lender. Home improvement loans are usually paid out in payments in proportion to the work that is being carried out and the contractor may be paid directly from the lender. In other cases the borrower may receive the money or the loan only upon proving the payments to the contractor.

Second loans

You may have substantial equity in your home that you can tap, but you should evaluate and compare the different alternatives in detail.

Home mortgage refinancing

By refinancing your mortgage you may be able to lower your payments, defer payments or release some cash for home improvements.

Unsecured loan

A personal loan for home improvement doesn't require you to have equity in your home or borrow against the value of your home. It is a loan disbursed by either a finance company or bank to finance your home improvement project.

Home Improvement Grants

There are Government grants programs available offering financial help to low income families to repair current homes. HUD aims at expanding home ownership opportunities and neighborhood revitalization and have programs to rehabilitate properties in partnership with state housing agencies and non profit organizations (see below).

External Resource

U.S. Department of Housing and Urban Development

Home Equity Calculator


Browse Mortgage Rates

Home Equity Stories

Scarce Solutions for the Home Equity Loan Freeze

Home Equity491Home Equity ArticlesMortgage Loan

As summer swelters across the U.S., so does the credit crunch. Many banks are putting home equity loans and HELOCs in the deep freeze, locking down home equity credit. Homeowners trying to continually tap their home equity now have severely limited options and solutions.

Underwater Mortgages Keep Falling

Mortgage News364Mortgage Loan

The number of homeowners with underwater mortgages continued to shrink in the fourth quarter of last year, although at a modest pace.

PMI Losses Might Hurt Consumers

Home Equity481Home Equity ArticlesMortgage Loan

Private mortgage insurance (PMI) is typically required for homeowners who have less than 20 percent equity in their property. But PMI providers are suffering huge losses, and that may translate into higher costs for consumers-even if they don't actually need coverage.

Home Equity Line of Credit - How Much Should You Borrow?

Home Equity424Home Equity ArticlesMortgage Loan

When you decide to get a home equity line of credit (HELOC), it's important to determine how large your credit line should be. This may be an easy decision as far as financial choices go; but you still should choose your credit limit wisely.