Funding Your Home Remodeling Project

Homeowners wishing to update their kitchen, bathroom, or other room in the house often find themselves in a difficult position, believing that they can’t afford to remodel. However, there are many options available to help fund the necessary project so the home can be modernized and updated for comfort and livability.

Finance Kitchen Remodel or Bath Remodel With Home Equity

If you owe less on your home than it is currently worth, using home equity to pay for renovations is an excellent idea and there are multiple ways to do this- a line of credit, an equity loan, and refinancing with cash back.

A home equity line of credit, or HELOC, is similar to a second mortgage (home equity loan). It allows the homeowner to borrow a specified amount of money against the value of the house for a certain period of time, withdrawing as needed. At the end of this time, payments for the full balance begin. A home equity loan differs in that the full amount of the loan is disbursed and even payments are made, beginning shortly after the loan is given.

While interest rates are low, you can refinance your home at the market value, taking cash out for the loan-to-value difference and pay your contractor upfront. Even if you don’t have home equity, refinancing at a lower interest rate may save you money, allowing you to pay out of pocket without borrowing additional funds.

Use Credit Cards With Zero Interest

To avoid paying interest on money borrowed for a custom kitchen remodel, apply for multiple credit cards that offer 0% financing for an extended period of time. This will allow you to make small monthly payments that are affordable without added fees.

Other Options

Some contractors will allow you to finance the cost of your room remodel through their company. Holding a garage sale can be a great way to raise funds, especially if you have a lot of high-ticket items that you are currently storing. You can eliminate your storage unit and make money at the same time. If you wish to update your home in order to sell it, you may want to take money out of long-term savings and pay it back after the sale.

A consultation with a remodeling contractor in Boise can help you determine the costs of your desired project as well as discuss any financing options they may offer. By knowing where your funding will come from, you can quickly turn your remodeling dreams into reality.

For more information about home remodeling projects, visit