Finance Your Home Improvements Without Refinancing Your Mortgage
Finance your home renovation or construction project with a second mortgage that lets you keep your current first-mortgage rate.
Product Overview
A Home Improvement Second Mortgage gives homeowners a flexible way to finance construction now and transition to permanent financing later without refinancing their existing mortgage.
This loan is based on the home’s completed value after improvements, not just the equity you have today.
Key Benefits
- Keep your current first mortgage and interest rate
- Interest-only payments during construction for 12 months
- Borrow based on future value after improvements
- Designed for major renovations, additions, or construction
Who Should Consider This Loan
This option may be right for homeowners who:
- Want to expand or improve their home
- Have limited equity today
- Don’t want to refinance their existing mortgage
- Are working with a licensed contractor
Loan Requirements
- Loan amounts from $100,000 to $500,000
- Second mortgage position
- Contractor must be on record
- Subject property must be located in Massachusetts, New Hampshire, or Maine
The Home Improvement Second Mortgage helps finance major home improvement or construction projects without replacing your existing first mortgage. During the construction phase, borrowers make interest-only payments for 12 months. Once the project is complete, the loan converts to permanent financing terms. Funds must be used for approved construction or improvement work performed by a licensed contractor and may not be used for DIY projects. This is not a home equity line of credit (HELOC). All loans are subject to credit approval and collateral evaluation. Terms and conditions apply.
Why Newburyport Bank
Our local lending team takes a collaborative, hands-on approach—working closely with you and your contractor to keep your project moving forward with clarity and confidence.
Ready to explore your options?
Speak with a Newburyport Bank loan officer to discuss your project and see if a Home Improvement Second Mortgage is right for you.
