How can renovation loans give you the money you need to update and repair your home?
If you’ve been paying on your home’s mortgage for quite a period of time and the value of your home is greater than what you currently own, you can consider using the equity in your home to get renovation loans to make repairs or update your home.
There are a couple of ways to finance your renovations using the equity in your home. Here are two ways that you can get the money you need for your home improvements.
- • 2nd Mortgage: With a second mortgage you are using the current equity in your home. The amount of equity has to be at least the amount you are looking to borrow. If you default on this loan, the lender can foreclose on your home. Terms can run from five to twenty years.
- • Refinancing: Many homeowners choose to refinance their existing mortgage and receive cash back based on the equity in their home.
There are other renovation loans programs out there so you should consult a professional to see which of these loans are right one for you.
Let the lending professionals at Midland Mortgage help you with your renovation loans.