Consumers Digest - Can you take out a home improvement loan and add it to your mortgage?

Can you take out a home improvement loan and add it to your mortgage?

Public Comments

you can its just a refinance on the potential value of your home BUT good luck finding a lender who will do it considering the credit crunch
Yes, you can...I've thought about it off & on, as well. - But, we just bought our home 3 yrs. ago (27 to go till pay-off), and adding more $ to the "total", especially considering the amount of interest we'd be paying on the improvement/s) over that time, doesn't seem justified...And, can you afford the increase of your monthly mortgage? You might consider a 2nd mortgage for the home imp., and be able to pay that seperately (in shorter amount of time)...Of course, it all depends on your personal circumstances, so why not call your mortg. lender and see what your options are? Happy remodeling, to you! :)
Yes, its a refinance. The basic gist is they will use the value of the home after the improvements and base the loan on that. For example lets say your house appraises for 200K right now and after the improvements it appraises for 250K. You would get about 95% or so of the 250K to do the improvements. Let me know if you need more info.
The home improvement loan provides many benefits. For example, when one takes a home improvement loan to upgrade a home and to get it in the shape, one can take a tax deduction. http://www.worldbestloans.com/Home%20Improvement%20Loan.htm Store card interest rates can be as high as 25-30%. Credit cards offer rates of around 15-18%. So these borrowings must be planned with proper care. Personal loans can be another option if it is difficult to plan credit card borrowings.