Flexible financing for your home upgrades. Pay easily over time with Synchrony Pay Later.*

What is a Renovation Loan?

A renovation loan gives homeowners the funds to make necessary or  desirable renovations to a home or access to the credit to make those  changes. Renovation loans come in a variety of packages including simple  personal loans or government-sponsored loans to get the job done.  Whatever route you take, you lender can help you find a way to roll your  loan into one package eliminating the need to pay two separate debts.

How do Renovation Loans Work?

Depending on your credit, location, scope of work, and where you are  in your mortgage proceedings, there will be different options available  to you. We’ve already alluded to some options for home renovation loans,  but they can take many forms and can be made to work in your favor in  many different ways.

 In a cash-out refinancing (cash-out refi for short), you replace your existing mortgage with a  larger home loan, taking the difference out in ready money. The amount  you can get is based on the worth of your home, and how much of it you  actually own (as opposed to still owing on your mortgage). It leverages  your home equity, in other words.

Your new mortgage will have different terms, possibly higher monthly payments and a different interest rate — sometimes higher than what you had originally. On closing day,  when the new loan is finalized, the lender would give you a check in  the amount of your cash-out funds. You’d start repaying the money — both  the mortgage and the cash-out funds —  in monthly installments, just as  you did your old mortgage.

 Ideal for those who need cash over a longer period-of-time and would  like to take advantage of a flexible line of credit available when you  need it. Borrow only what you need from the available equity in your  home.

HomeTrust offers competitive home equity rates, plus:

• Fast closings – apply online with our state-of-the-art application system
• No closing costs1 – be confident your money is working for you with no closing costs and competitive rates
• Interest-only payments for 10 years2 – pay only the interest amount on the loan each month for the first 10 years

Need to borrow a specific amount for a repair and want to consolidate  debt into one, simple payment? Like your original home mortgage, a  HELOAN allows you to borrow exactly what you need and then make regular  payments during a fixed repayment period.

HomeTrust can now offer you a HELOAN that

• You apply for the amount you need
• Offers a competitive, fixed interest rate that doesn’t change during the life of your loan
• Each payment, the same every month, includes interest charges and a portion of the loan principal.