I have a translation issue and I'm not sure where else to turn for help. In our country, there is a type of refinancing of a mortgage loan, which works thusly:

Someone decides to renovate their property/build a house using their own money, but after time during the reconstruction, they realise they do not have enough money to complete it. That's when they opt to get a mortgage instead of a regular loan counting in all the expenses exerted, sometimes even up to 3 years back from the start of the renovation/building. Is there an English term for this type of refinancing?

Many thanks in advance for your answer!

  • 1
    "Refinancing" implies that there is an existing loan that you are paying off in order to take out a new loan. But your description seems to be talking about a new loan not a refinance. It sounds like you are describing a construction loan. You haven't specified a country tag. In the US, I haven't heard of someone taking out a construction loan and getting reimbursed for three years of outlays but you'd need to look at each lender's terms and conditions for their construction loans. Mar 10 '20 at 20:57
  • This may help: budgeting.thenest.com/…
    – TTT
    Mar 10 '20 at 23:03
  • You might be looking for a Home Equity Line of Credit. A Second Mortgage might also be of interest. If you don't currently have a mortgage then it would simply be a First Mortgage.
    – MonkeyZeus
    Mar 11 '20 at 13:06

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