How Should You Finance Home Improvement Projects?

Most home improvement projects are a serious investment. This is true for when you hire professionals and when you just do it yourself. Paying for the work that is to be done is a really serious decision. You need to know the options available and you should think about which one is the best for you. It is really easy to click here and get a payday loan from cashfloat but you should do this only after you fully understand other common options that might be available for you.

Try To Use Cash Whenever Possible

The first thing you should know is that cash is normally preferred to ending up accumulating debt. The problem is that a major kitchen remodel will cost on average around $55,000. Even the bathroom can cost around $16,000. It is hard to save enough to afford such expenses. However, if the project is smaller, the first think you need to consider is using cash.

Another thing you do need to think about is combining cash with a regular financing option. The more you manage to pay for with paper money, the better!

Low Interest Or 0% Credit Cards

These are quite good for the smaller projects because it is much easier to pay off the money that you loan. Lower interest rates associated with these credit cards make everything a good idea for the projects that are under $15,000. However, you need to be sure you fully understand terms and fees. Also, you want to be 100% sure that you can repay what you loan since when you do not meet the repayment dates, interest tends to go really high.

Unsecured Or Personal Loans

These are normally recommended for the medium-sized projects, those up to $50,000. You can easily apply for the loan and you do not have to deal with collateral requirements. Amounts you receive are higher than what you get from the credit cards. The problem is that interest rates are normally higher that with HELOC loans. Rates and terms can also greatly vary between niche loan products. Do a good research and see if such an option will help you.

Secured Loans

You should seriously consider secured loans when you need to do a big project. When home equity exists and the project is over $50,000, you want to tie the loan to the property. Various options exist like cash-out refinances, home equity loans and HELOCs. A big advantage with the secured loans is that you can deduct interest at various points so that interest rates are reduced on taxes. However, remember that there might be many application hoops to go through and hefty closing costs, even if interest rates are low.


To sum up, you need to think about how big the home improvement project is. Then, look at the financing options that are recommended above. Also, be sure that you always think about how much you can actually afford to pay out of your own pockets. Only borrow the rest of the money you need.