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Looking for a Home Improvement Loan?

What is a Home Improvement Loan?

A home improvement loan is a loan secured by the value of your home that enables you to convert some of the equity in your home to cash you can spend on home improvements. "Improvements" may be anything that enhances your home, but typically they are considered to be changes to the land or structure, such as landscaping, remodeling, a room addition, and the like.

Types of Home Improvement Loans

A home improvement loan may be made under almost any available loan program as long as you and your property qualify under that program. Since cash is being "taken out" to pay for improvements, another way of classifying a home improvement loan, at least in lender terminology, is a "cash out refinance." That would be a new first mortgage loan that pays off any existing loans you may have against your property and provides a new loan sufficiently large that some extra cash can be paid out to you upon closing.

There is another form of home improvement loan that was very common in the past: the "home equity loan," or "home equity line of credit." That type of loan also could be used to obtain cash for home improvements. In most cases the line of credit was structured as a second mortgage with a revolving credit feature, enabling the borrower to write checks or call the lender to obtain a draw of funds against home equity. Those types of loans, while still available, are far less common today as banks have become more cautious about making loans that are in "second position" behind an existing first mortgage loan.

At present LRG Mortgage does not offer equity lines of credit. Instead all our home improvement loans are done by refinancing your existing loan and making the new loan large enough to provide cash back to you for home improvement financing.

Home Improvement Loan Rates

If you would like a current quote for a home improvement loan you may use our automated quote tool (at upper left). Enter your loan quote request as a "Refinance with cash out." Or you may call us for a live quote.