Remodeling Loans

Are you planning on building a new kitchen... bigger bathroom... Media or family room addition?

Offers customers who are building homes the flexibility of a double-close loan with the ease and benefits of a single close loan. Construction financing commonly involves two loans: one interim construction loan for the building of the home; and one permanent loan for the completed home. There are three ways to pay for a remodel to your new home.

• Our Remodeling Loan is designed for the homeowner who is looking to make a major improvement to a primary residence. This unique second mortgage calculates the loan amount by using the future value of the planned improvements. This closed-end second financing allows the flexibility of a 30-year mortgage with a 15-year balloon or a fully amortizing 15-year mortgage.

• The second way for obtaining funds to complete your major remodel is by paying off the existing current mortgage with a new construction loan. This method is very popular because you can obtain a whole new loan to payoff the old mortgage and request funds to complete the remodel based on future/finished value of your remodel. Plus, it provides you with one new interest rate locked in up front instead of two different rates (one high, one low) blended together.

• Last but not least is to get a home equity line of credit to pay for your remodel. This loan is inexpensive to obtain but the rate is usually based on the prime rate plus.However, this loan is the fastest and cheapest loan to get.

The prime rate is currently in the 8.25% range. When rates are low, this loan can be a great way to add on to your home but will not be based on finished value but existing current value. In many cases depending on the amount of funds needed, you may not have enough equity to finish the project. Be careful because it's very possible to run out of funds.

If you need help determining the best way to obtain financing to remodelyour home, call Summit Lending Services today at (800) 899-3534 and we will help you OR complete our on-linemini loan application.