Any homeowner has a long list of projects which can help them boost up the appearance of their house. But, all these fixes cost a lot of money, and not all of us can finance these improvements. But, there are ways which can help you turn your dreams into reality. If you have cash, then it’s perfect. But, what percentage of people has money to invest in home improvement? On the other hand, if you don’t have cash and you still want to renovate your home, then here is how you can do it.

Refinance your mortgage

Refinancing is the best option for homeowners who would benefit from it. This can provide you lower interest rates, as long as you don’t divide the expenses of costs over more years than the renovation will last. For example, the average interest rate for a 30-year mortgage is 3.9 percent and for the 15-year mortgage is 3.1 percent.

The home equity line of credit

If you already have a right mortgage, then a home equity line of credit could be another solution. With these loans, you can withdraw money as you need it and pay it back at your own pace, as long as you make a minimum monthly wage.

How To Finance Your Home Improvement

As long as you use the money, you don’t have to pay interest. You can use money up to ten years, and in some cases, it is renewable. On the other hand, if you fail to make the payments, you will lose your house. The interest rates are adjustable, and we always suggest your work with banks because they will provide you better deals.

Home equity loan

This type of loan works for a fixed amount. You borrow a certain amount of money and provide fixed payment over a specific period. The average time length is 15 years, but some lenders can offer your short period, such as five years, or long as 30 years. A home equity loan is perfect for people who are allergic to adjustable rates, and it’s still cheaper than construction loan.

Construction loan

If you aren’t making some major repairs or building house, then this loan isn’t for you. On the other hand, if you are building some significant addition to your home, then you should consider construction loan. They aren’t always easy to find and come with a lot of requirements you have to achieve.


Credit card

A credit card should be your last option, considering the interest rates. It should help you cover some small adjustments and renovations. On the other hand, many people use credit cards to pay the materials for home improvement projects because of the award points.