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Home Renovation Loans

Wanting to renovate, remodel and/or repair a home? 

If you don’t have enough liquid cash to finance renovations or repairs, a home renovation loan is worth considering. Consider the various types of loans available for such projects.
A home equity loan is a fixed-rate, lump-sum loan with monthly payments that remain the same for the loan term. A home equity line of credit, or HELOC, has a credit limit and revolving balance. This loan works for homeowners who have several large payments due over time on a big home improvement project.

With either option, you’re pledging your home as collateral, meaning that if you don’t make your payments, you could end up losing your home.

Key considerations with home equity loans and HELOCs:
  • Interest rates on home equity loans and HELOCs are lower than they are on unsecured personal loans.
  • With HELOCs, you pay interest only on the amount you withdraw.
  • Equity loans may have upfront fees, such as appraisal or attorney and title insurance fees (which may be included.)
A cash-out loan allows homeowners to refinance their mortgage for a higher amount than the previous mortgage, based on how much equity they have, and take out the difference in cash.
  • You’ll need at least 20 percent equity in your home to qualify for cash-out refinancing. The total loan amount is generally limited to the available equity in your home. 
  • There are no restrictions on use of the money.
  • The loan is based on current home value, not post-improvement value.

Tracie Worley professional photo.

Tracie Worley
Mortgage Banking Manager
Serving Johnston County,
Harnett County, and Wayne County

1031 N. Brightleaf Blvd.
Smithfield NC 27577
(919) 938-2652
NMLS #452431
James Boring
Mortgage Loan Officer
Serving Johnston County,
Wake County, and Wilson County

11591 US 70 Hwy W
Clayton, NC 27520
(919) 550-0200
NMLS#: 2418880