Home improvements are always a good thing but they can get pricey. Fortunately, the equity in your home may be able to finance your home improvement plans!
You can accomplish this with two different types of loans; a new mortgage or home equity line of credit.
Mortgage refinancing will replace your current first mortgage with a larger mortgage. This is a good option if the interest rates are favorable. It will provide the extra money needed for your improvements.
Home equity financing keeps your existing first mortgage intact. This will add a second lien on your property that you can pull the cash from to finance your improvements. The home equity loan will be separate from your primary mortgage and will require a separate payment.
How do you decide between the two?
Ultimately, it depends on which will give you the lower payment and the cash you will need for your project. A Ross Mortgage loan officer will help you decide which option is in your best interest.