How to Finance Home Improvements

A new first mortgage can be appropriate for homeowners considering home improvements that increase their homes value. If your current mortgage rate is higher than todays best rates a re-fi can still make sense, especially if you can re-fi out of Private Mortgage Insurance. 

A HELOC is another way to borrow against the value of your home, but unlike a refinance, it doesn’t pay off the original mortgage. Instead, you get a line of credit — usually up to 80% of your home’s value, minus the amount of your home loan.

A Home Equity Loan is an excellent way to turn your equity into a lump sum rather then a line of credit as with a HELOC. 

They work well if your First Mortgage is at a very low interest rate.