Kitchen remodels and bathroom remodels can get expensive. And if you are like most homeowners, you do not have enough spare cash lying around to pay for your bathroom remodel out-of-pocket. Luckily, there are several ways to finance your home improvement project, allowing you to still have the bathroom of your dreams!
Tips for Financing your Bathroom Remodel
- Credit Cards: If you cannot afford to write a personal check to cover the costs of your new bathroom, credit cards are a common way to finance the project. However, it is important to pay attention to your interest rates. Your credit card, while convenient, may not be the most economical choice.
- Personal Loans: If you have a good credit score, you should be able to obtain a personal loan to finance your bathroom remodel. These types of loans often have better interest rates than credit cards, as well.
- Second Mortgage: This is a mortgage taken out on a home while the homeowner still owes money on the original mortgage. The interest rates are often lower than credit cards or personal loans. Second mortgages are often easier to qualify for than personal loans, as well, because the house is used as collateral.
- Home Equity Line of Credit (HELOC): A homeowner is given a credit limit equal to the amount of equity in their home. The biggest benefit of this type of financing is that the borrower only pays interest on what he/she uses, but is already approved for the maximum amount. Plus, the interest paid is tax deductible. The only real downfall is that this type of financing uses the house as collateral, like a second mortgage. However, unlike a second mortgage, if the house is foreclosed upon, the borrower may still be liable for the amount owed.
- Cash-Out Refinancing: This allows a homeowner to re-mortgage their house for a larger amount than they owe, taking out the equity in cash. Refinancing does require a second closing, with closing fees. But homeowners are often able to obtain a lower interest rate, which means lower payments.
Before making any financing choices, speak with a financial advisor. This blog if just a brief overview of the benefits and risks of each type of financing.
“Katie and I want to thank C.C. Dietz, lnc., for the outstanding workmanship displayed during our recent renovation. I cannot say enough good things about our new bath, kitchen, new hardwood floor and extended living-room. We are very pleased. Our sincere thanks to you and all those involved with our renovation project. C.C. Dietz is a name we will certainly recommend to our friends and family.” – Wendell & Kate La Prairie of Manchester, PA
We are York’s premiere building contractor!
C.C. Dietz, Inc. Builders
1890 Mt. Zion Rd.
York, PA 17406.
Tags: bathroom remodel, bathroom remodeler, bathroom remodeling, bathroom remodels, Cash-Out Refinancing, Financing, Home Equity Line of Credit, home improvement project, Mountville, Pennsylvania, Personal Loans, Second Mortgage