As a homeowner, you often need extra cash for home improvements. One option is to take out a secondary loan, otherwise known as a home equity loan, to remodel your home. If you stay up-to-date on loan choices you may elect to choose a home improvement equity loan. The equity loan provides an option for improving your home's value by providing cash to make repairs or remodel your home. You can use the cash for external and internal repairs, carpeting, tiling, floors, painting outside and inside structure, roof repairs, plumbing repairs, structural modifications, structural repairs, and structural remodeling.

The maximum loan amount you can borrow depends on your status with the lender. If you've had prior loans and showed good faith, then the lender may offer 100% equity lending, as a new customer you may receive 85% more or less on equity lending. The loans are often extended up to 15-years; however, few lenders will offer longer terms or shorter terms, depending on the lender and the outcome of the application. Most lenders offer joint and single packages, however, both are responsible if more than one party applies for the loan.

Home improvement equity loans come in fixed rate or adjustable rate options. However, the fixed rate may often be your first choice, since the loans interest will remain constant–and you will not be subject to the fluxuations of the market.

However, if you take out the adjustable rate loans you are subject to pay higher or lower interest rates per quarter on the loan. Many home improvement loans require that an “independent contractor” oversees the improvements of the home; and thus home improvement loans are intended
to improve the home, forcing the borrower to utilize the cash only for repairs and improvement. Some lenders may place penalties on home improvement equity loans to guarantee the loan is used for its intentions.