Whether you’ve been dreaming of turning your basement into a sleek home gym, upgrading your kitchen with all the latest appliances, or transforming your backyard into the perfect entertainment space, a home remodel is an exciting way to invest in your property. But let’s face it—financing a big remodel can seem like a daunting task.
Luckily, there are a variety of ways to finance a remodel that fit different budgets and needs. We want to share some of the best options with you. From tapping into the equity of your home to applying for personal home improvement loans, here are three financing options to consider:
1. Home Equity Line of Credit (HELOC) – Unlock the Power of Your Home’s Equity
A Home Equity Line of Credit, or HELOC, is one of the most popular and flexible ways to finance a major remodel. It allows you to borrow against the equity you’ve built in your home. The good news is that the interest rates on a HELOC are often lower than those on personal loans or credit cards, and they come with a lot of flexibility when it comes to how you borrow and repay the funds.
For homeowners who are looking to make major improvements, this can be a great option. The way it works is pretty simple: you’re approved for a line of credit based on the equity in your home, and you can draw funds from that line as needed, just like a credit card. Plus, you only pay interest on the amount you use, which keeps your payments lower at first.
Why HELOCs are a great option:
- Lower interest rates compared to credit cards or personal loans.
- Flexible borrowing—you can use the funds as you go and pay back as you go.
- Potential tax benefits on the interest if the funds are used for home improvements.
If you’re thinking about getting a HELOC for your next remodel, we highly recommend checking out Bellco Credit Union. They offer great rates on HELOCs and are incredibly easy to work with. They’ll help you through the process, answer your questions, and get you the funding you need to make that remodel dream a reality. Give them a call to discuss your options!
2. Personal Home Improvement Loans – A Fast, Fixed-Rate Option
Not everyone has the equity in their home to take advantage of a HELOC, or maybe you’re just looking for something a little simpler and faster. If that’s the case, a personal home improvement loan might be the right route for you.
With a personal loan, you borrow a lump sum of money at a fixed interest rate, and you’ll have a set repayment term—usually 5 to 10 years. The benefit of these loans is that you know exactly how much you’ll pay every month, which can make budgeting and planning your remodel easier.
Why personal home improvement loans work well:
- Fixed interest rates and monthly payments, so there’s no surprise when your bill comes in.
- Quick approval process—you can often get the funds in just a few days.
- No collateral required—unlike a HELOC, there’s no need to put your home up as collateral.
A fantastic option for this kind of loan is through Slice, our trusted partner in home improvement financing. Slice offers tailored loans specifically for homeowners looking to improve their homes. They make the process quick and easy, and they’re committed to helping homeowners get the funds they need with fair, transparent terms. If you’re considering a personal loan for your remodel, contact us and we'll send you a application link so you can find out how much you qualify for.
3. Cash-Out Refinance – Use Your Current Mortgage to Fund Your Remodel
For some homeowners, a cash-out refinance can be an excellent option if you have enough equity in your home. With this option, you essentially refinance your mortgage for more than what you owe, and you take the difference in cash. This lump sum of money can then be used to finance your remodel.
The benefit of a cash-out refinance is that you could potentially lock in a lower interest rate on your mortgage, which could save you money in the long term. However, it’s important to note that refinancing can take longer than other financing options, and you’ll want to make sure that the new loan terms work for your budget.
Why a cash-out refinance might be right for you:
- Lower interest rates if you can refinance to a better deal.
- Potential tax deductions if the loan is used for home improvements (always check with your accountant!).
- Longer loan terms, which can help lower your monthly payment.
If you’re interested in exploring a cash-out refinance, talk to your lender to see if this option is right for your financial situation. Make sure to crunch the numbers carefully, as you’re increasing your mortgage balance, which could have an impact on your long-term payments.
Final Thoughts
Financing a home remodel doesn’t have to be intimidating. Whether you’re tapping into your home’s equity with a HELOC, applying for a personal home improvement loan with Slice, or refinancing your mortgage, there are plenty of options available to help you fund your dream remodel.
At HOMEfix, we’ve helped homeowners just like you finance their remodels, and we’re here to help you make the best decision for your home and your budget. If you have any questions about these options, don’t hesitate to reach out—we’re happy to guide you through the process.
If you’re ready to take the plunge and start that remodel, start by talking to Bellco Credit Union about HELOC options, or reach out to us to explore your options with Slice for fast and simple home improvement loans. Either way, financing your next remodel is easier than you think!
