Home Improvement Loans

Home improvement loans offer a low interest, tax deductible method of raising capital for completing your improvement project. The are generally fixed rate loans that are recorded as a lien on your property, similar to your first mortgage. Because they are a lien, the interest is generally tax deductible, offering a low cost source of funds for your project.

When the new loan records, you are provided funds in one lump sum. The home improvement project management is under your control.

In certain cases, home improvement loans can be used to pay off revolving debt for projects already underway.

There are home improvement loans that are similar to debt consolidation loans, whereby a portion of funds may go toward paying down debt and reducing your overall monthly payment requirements.

Home equity is also not a requirement in many cases and loans can make up to 125% of your home value.

Features of the home improvement loan make this an attractive, flexible way to perform projects

A home improvement loan is a low cost, tax deductible way to make your home look the way you really want it to, and also increase the value. There are typically no restrictions for home improvement, as long as they are within the boundaries of local building requirements. You have the choice of doing the home improvement work yourself, or using a contractor.

With a home improvement loan, you get a fully amortized, fixed rate loan, which is placed in second position on the title of your home. This type of home improvement loan is usually paid to you as a lump sum. Another option is a line of credit on your home, which is based on a variable rate, and offers you the ability to draw money as you need it. There is no change in the terms your existing first mortgage when you take out a home improvement loan. You have a choice of loan terms from 5 to 30 years. An existing home equity loan must be paid with the new loan.

There is no equity is required for a home improvement loan. The maximum loan amount can go as high as 125% of the current value of your home.

Another advantage of a home improvement loan is your savings from writing off the loan interest, which can exceed the normal $100,000 limit.