Dreaming of a new kitchen? Ready to refresh that outdated bathroom? Maybe it’s time to turn your spare room into a home office or in-law suite. Whatever your vision, financing it might be simpler than you expect. When it comes to funding a home improvement project, you’ve got options!
Choose among these flexible and affordable loan solutions—so you can stop dreaming and start building!
Cash-Out Refinance
If you’ve built significant equity in your home, a cash-out refinance allows you to replace your current mortgage with a new, larger one—and receive the difference in a lump sum. You might qualify for a lower interest rate than your original loan, which can reduce your monthly payments. However, if the repayment term resets, you could end up paying more in total interest over time. As with any mortgage, closing costs will apply.
✔️Best for: A large project where you know the total cost and want to refinance into a potentially lower mortgage rate.
Home Equity Line of Credit (HELOC)
Need ongoing access to funds? A HELOC lets you borrow against your home’s equity as needed, giving you flexible access to financing—provided you’ve built up significant equity in your home.
A HELOC has two main phases—a draw period and a repayment period—each lasting a set number of years, depending on the terms set by your lender.
Be aware that most HELOCs have variable interest rates, so your payment may fluctuate with the market. Interest on a HELOC may be tax deductible if the funds are used to substantially improve your home. Consult your tax advisor to see if you qualify.
✔️Best for: Ongoing or evolving projects where the total cost isn’t clear upfront, or several different projects over a period of time.
Home Equity Loan
Like a HELOC, a home equity loan requires that you’ve built significant equity in your home—but instead of flexible borrowing, it provides a lump sum with a fixed interest rate and predictable monthly payments. Since it’s secured by your home, closing costs apply—but rates are often lower than unsecured alternatives like personal loans. As with a HELOC, interest on a home equity loan may be tax deductible when used for major home improvements, so check with your tax advisor.
✔️Best for: A significant renovation where you know the cost and don’t want to refinance your mortgage.
Personal Loan
If you have limited home equity—or simply prefer not to borrow against your home—a personal loan is a fast, unsecured option. You’ll receive a lump sum and repay it over a fixed term with consistent monthly payments. Because the loan is not secured by any collateral, such as a house, interest rates tend to be higher.
✔️Best for: Small to mid-sized projects when speed is key.
Credit Card
A credit card can offer convenience and quick access to funds. However, keep in mind that credit cards typically have higher interest rates—and carrying a large balance over time can be costly. Only use your credit card if you’re prepared to clear the balance quickly.
✔️Best for: Minor repairs or purchases you can pay off promptly.
Get Excited about Your Home Improvement Project!
At Excite Credit Union, we’re here to help you turn your goals into reality. Whether you’re planning a full home remodel or a simple room refresh, our lending team offers personalized guidance, competitive rates, and flexible options.
Discover Excite’s full range of home loan options—and take advantage of our special offer to save big on closing costs. Plus, explore our flexible personal loans designed to fit your needs.
Ready to take the first step? Let’s make it happen—together.