A home improvement loan can be obtained by taking out a second mortgage or a home equity line of credit. You can utilize the equity in your home to obtain one of these second liens on your property.The loan can be either an adjustable or fixed rate home equity line of credit. Most equity lines for home improvements will have an interest only "draw period".
Most equity lines of credit are based off of the prime rate. Your margin over or under prime will be determined by your credit profile, documentaion, and loan to value.
