Home Improvement

Similar to a home equity loan, a home improvement loan allows home owners to borrow against the equity in their property.

A home improvement loan lets you use your equity, the value of your home minus what you owe as a security that you'll repay the loan. Depending on the lender, you could borrow between 80% to 100% of your homes equity, and sometimes more. A homeowner would normally take out a home improvement loan to make major renovations on a home, add a pool, finish a basement, or even add an extra bedroom. Home improvement loans normally have a fixed interest rate and a payment for usually 10-15 years.