METRO Home Improvement, Inc.
16 Harris Dr.
Marietta, GA 30067

(678) 277-9434


You may need to borrow some or all of the money needed for your project. Depending on the value of your home and the terms of your current mortgage, you have several options to consider.

Using the equity you have: If the difference between the current value of your home and the balance remaining on your mortgage is enough to pay for your project, you may be able to obtain a home equity credit line or a 2nd mortgage. These loans will provide you with the money you need to pay for your project. Many banks offer these loans with no closing costs. You may also consider refinancing the entire house. You can then utilize the extra money available from the new loan to pay for the project.

When you don't have enough equity: If the current value of your house is not high enough to cover the costs of the renovation, then you may be able to obtain a loan for the project based on the value of your house after the work is complete. The bank will appraise your home based on plans and specifications that METRO Home Improvement will prepare for you, and give you a new loan to cover the amount of the project. This type of loan may be available as a new 1st mortgage or as a 2nd mortgage.

If you choose to take out a new 1st Mortgage Home Improvement Loan (a refinance), the bank will pay off your existing mortgage and distribute the money during the project. You will then have one new loan for your home. If you get a 2nd mortgage, your existing loan will remain, and you will have two payments to the different lenders at the end of the project.

Which loan is best? This depends on the interest rate and term of your existing mortgage. If you current loan has a high interest rate, then refinancing may be appropriate. You should consider how much the closing costs will be, the new interest rate, and the term of the loan. If your current loan has a low interest rate, you may be better off taking out a 2nd mortgage and keeping your existing 1st mortgage.

Three of the most popular methods to finance a home improvement are:

  • An equity line of credit - borrowing against the equity in your home to pay for he improvement while keeping your original mortgage.

  • A cash-out refinance - refinancing the entire home on a new mortgage that allows you to take equity out of your home in cash to pay to for the renovation.

  • A major rehab loan - a construction loan that eventually is converted to a Permanent mortgage.
For assistance determining the best type of loan for you, consider asking your accountant or banker for advice. You will find that banks specialize in different types of loans, and not every bank will be able to provide you with the right loan for your particular situation. You may need to talk to several lenders before you find the loan that is right for you. Also, when you meet with a METRO Home Improvement representative to discuss your project, they will review the different financing options available to help you determine which is right for you.