Owning a home in New Hampshire means staying ahead of repairs — and sometimes, those repairs aren’t small. A failing furnace, a roof nearing the end of its life, outdated kitchens and bathrooms, or aging systems common in NH’s older housing stock can all create sudden, expensive needs.

Ideally, every homeowner budgets for major repairs before they’re urgent. But when the furnace quits in February or the roof starts leaking after a storm, paying cash isn’t always an option. If you need to finance home repairs or renovations, three main paths typically make the most sense: a cash‑out refinance, a renovation loan, or a second mortgage. Homeowners age 62+ may also have an additional option through a HECM reverse mortgage.

Here’s how to think about each one — and how to choose the right fit for your home.

Cash‑Out Refinance

A cash‑out refinance replaces your current mortgage with a new, larger one and gives you the difference in cash. For most owner‑occupied homes, cash‑out is capped around 80% of your home’s value.

This option works best when:

  • Current rates are favorable compared to your existing mortgage
  • You prefer one monthly payment instead of two
  • You have enough equity to cover the project

Cash‑out refinances are also available for second homes and investment properties, though with different limits.

Renovation Loan

Renovation loans are designed specifically for financing home improvements — and they can go bigger than typical repair financing. These programs allow you to borrow based on your home’s after‑renovation value, not just what it’s worth today.

This option works best when:

  • The project adds significant value (kitchen, bath, addition, garage, second floor)
  • You’re tackling major or structural improvements
  • You want one loan that covers both the home and the renovation

If you want to explore renovation financing in more detail, you can learn more here: https://www.nhmortgages.com/loan-programs/renovation-loans-new-hampshire/

Second Mortgage (Home Equity Loan or HELOC)

A second mortgage lets you borrow against your home’s equity without touching your existing first mortgage. That’s especially appealing if you already have a great rate locked in.

Two common forms:

  • Home Equity Loan: Lump sum, fixed rate
  • HELOC: Flexible line of credit, variable rate

This option works best when:

  • You want to keep your low first‑mortgage rate
  • You need flexibility for phased or uncertain repair costs
  • You have strong equity but don’t want to refinance

(When your HELOC page is ready, we’ll link it here for SEO strength.)

HECM Reverse Mortgage (Age 62+)

For homeowners age 62 or older who have no mortgage — or a very small one — a HECM reverse mortgage can be another way to pay for needed repairs without adding a monthly mortgage payment.

This option works best when:

  • You want to use your home’s equity to cover repairs or improvements
  • You prefer not to take on a new monthly payment
  • You plan to stay in your home long‑term

With a HECM, homeowners remain responsible for property taxes, homeowner’s insurance, HOA fees (if applicable), and ongoing maintenance. But the loan itself does not require monthly principal and interest payments.

To learn more about how a HECM works, visit: nhreversemortgages.com

Which Option Is Right for You?

It depends on:

  • Your current mortgage rate
  • How much equity you have
  • The size and type of project
  • Whether the work adds value or simply maintains the home
  • Your age and long‑term plans for the property

There’s no one‑size‑fits‑all answer — but there is a right answer for your situation.

If your home needs work and you’re weighing your options, I can help you compare the numbers side‑by‑side so you can choose the most cost‑effective path.

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Renée Duval Senior Loan Officer nmls 97967 Bookend Lending LLC nmls 2557411
19 Washington St Concord, NH 03301 Branch nmls #2565328
Licensed by the New Hampshire Banking Department

Bookend Lending LLC is an Equal Housing Lender. We are committed to providing equal housing opportunities and maintaining fair lending practices in all mortgage transactions. All loans are subject to credit approval, underwriting requirements, and program guidelines. Loan terms and availability may vary based on individual financial profiles and property characteristics. This is not a commitment to lend. Additional conditions may apply.

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