When you’re staring at outdated cabinets or dreaming of a backyard oasis, the idea of a home remodel is exciting. But if you’re already sitting on $90,000 of existing debt, adding another $100,000 to the pile is a serious decision, not just a design challenge.
The question becomes: How do you fund a major home improvement project without putting your finances, or your home, at risk?
Financing a Remodel: Your Main Options
If you can afford to save up before starting your renovation, that’s always the safest play. But for most homeowners, especially those with large projects in mind, waiting isn’t realistic. Thankfully, several borrowing options exist, and each has different risks and rewards.
Here are the most common ways to fund your remodel:
- Home Equity Loan or Line of Credit (HELOC): These allow you to borrow against the value of your home. Rates are usually lower than unsecured loans, but your home is on the line if you default.
- Cash-Out Refinance: This option replaces your existing mortgage with a new, larger loan. You take the difference in cash—handy for renovations, but it resets your mortgage terms and can come with hefty closing costs.
- Home Improvement Loans: Unsecured personal loans with faster approvals (sometimes within 24 hours), but typically higher interest rates.
Regardless of what you choose, the most important step is this: Understand every detail before you sign anything. A loan that seems like a great deal upfront may come with long-term consequences, especially if you're already juggling a large loan balance.
Ask questions. Read the fine print. Compare rates from at least three different lenders. And never assume your bank is giving you the best offer just because you’ve been with them for years.
Don’t Skip This Step: Vet Your Contractor First
Once the financing is lined up, don’t rush into hiring the first contractor who returns your call. A solid remodel starts with a solid pro, and the wrong one can derail everything.
A poorly vetted contractor could cost you more than money. A half-finished job or botched installation can reduce your home’s value, create new safety issues, and leave you with little legal recourse. Worst case? You’re out the money and back at square one.
Here’s what to look for:
- Proven experience with projects of similar size and scope
- Verified business licenses and insurance
- A clear, written contract (no vague verbal agreements)
- Positive reviews (and not just cherry-picked testimonials)
And if you're in Georgia, you have a bonus resource: TrustDALE.com. Our certified home service providers have been through a seven-point vetting process and are backed by a $10,000 Make-It-Right Guarantee. That means if something goes wrong, you're not left hanging.
Take Your Time – This Is Your Home, After All
A six-figure renovation isn’t something to wing. Yes, your vision matters. Yes, excitement is part of the process. But so is planning… and lots of it.
Before committing:
- Run the numbers. Can your monthly budget handle another payment?
- Consider whether the upgrade will increase your home’s value.
- Ask yourself: Is now the right time—or should I wait and save?
Bottom line: You’ve got options. You’ve got resources. What you don’t want is regret.
Thinking about a major renovation? Start by comparing financing terms, then research certified contractors at TrustDALE.com to ensure your investment is protected from start to finish.