- Mortgages
- How It Works
- About Us
- Resources
- Contact Us
-
APPLY NOW
APPLY NOW
780-413-1684 780-413-1684
Many homeowners want to renovate their homes, but few have the financial means. If you wish to enhance the home's aesthetics and comfort or improve its functionality, you'll need to invest significant money.
Some popular ways to fund home renovations and improvements include using personal savings, refinancing your mortgage, and tapping into your home equity. In the sections below, you'll learn everything there's to know about home equity mortgage loans for home improvements. Call BMC Mortgage & Investments today to discuss your options.
Homeowners who have built significant equity in their property often have the option to borrow a loan against that equity. Your home equity refers to the difference between the amount of money owed on the mortgage and the property's current value. If you have an outstanding mortgage of $200,000 and the home is currently valued at $900,000, your home equity is $700,000.
Unlike the Home Equity Line of Credit, home equity loans are a lump sum with fixed interest rates and a specified repayment period. These loans are flexible, allowing you to use them for several reasons.
A home equity loan comes in handy if you do not have enough personal savings and do not want to incur the high-interest rates of personal unsecured loans. But what are the advantages of tapping into your home equity when running home renovations and improvements? Besides lower rates and convenience, here are the other benefits:
Now that you know what a home equity loan is and how it works, let's look at the Dos and Don'ts of securing and using these loans for home improvements.
Using a home equity mortgage loan for home improvements may seem simple, but a lot can go wrong. If you are thinking about using a home equity loan to renovate your home, consult BMC Mortgage & Investments today for expert guidance based on your specific needs and circumstances.