Is a renovation loan the same as a home equity loan?

A home renovation loan is different from a home equity loan. Usually, loans advertised as renovation loans are personal loans that have high interest rates. You can use a home equity loan for anything, including home improvements. And because a home equity loan is secured by collateral (your home), a lender will likely offer a lower interest rate.

Does a home equity loan require an appraisal?

Yes, you’ll need a home appraisal for a home equity loan . Home appraisals are a professional, third-party opinion on what your home is worth. The appraisal’s result will help your lender determine how much equity you have to borrow.

What is the quickest way to get equity out of your home?

Home equity loans and HELOCs are the two fastest ways to withdraw equity from your home. Closing times will vary, but it generally takes 2 – 6 weeks to close. A cash-out refinance is also a good option for a fast turnaround but can take longer than a home equity loan.

Using A Home Equity Loan for A Remodel