Home Improvement:

A home improvement loan is a way for you to improve your home and
make it look the way you really want it to, while increasing the value
and not to mention being tax deductible. There are typically no
restrictions for home improvement loans, as long as they are within the
boundaries of local building requirements. You have the choice of doing
the improvement work yourself, or using a contractor.

With a home improvement loan, you get a fully amortized, fixed rate loan,
which is placed in second position on the title of your home. It is essentially
a second mortgage or equity loan which is usually paid to you as one lump
sum. Another option is a line of credit on your home, which is based on a
variable rate, and offers you the ability to draw money for making
improvements only as you need it.

There is no change in the terms your existing first mortgage when you take
out a home improvement loan. You typically have a choice of loan terms
from 5 to 30 years. If you have an existing equity loan or second mortgage,
it must be paid off with the new loan.