Bathrooms are one of the more expensive rooms to remodel in your home because a bathroom renovation typically includes tearing out the entire room and redoing just about everything. Bathroom remodeling projects can get very pricey, especially if you’re going for high-end materials. If you have a tight budget or don’t have cash on hand, finance options for bathroom remodels could be right up your alley.
Here’s are your main bathroom remodel financing options:
These two bathroom remodel loans, home equity loans and HELOC’s, often get mistaken for each other, but there are very important differences between them.
A home equity loan is a lump sum secured loan that you can use to finance a bathroom remodel, as well as other home improvements. When you finance with a home equity loan, you have a certain amount of time to repay the money. The interest rate will vary depending on your current credit score and how much you’re borrowing. Bathroom remodel loans like this are super common.
Home Equity Line of Credit (HELOC) is similar to a line of credit because it’s an open-ended secured loan that allows you to borrow between a minimum and a maximum amount at any time during the term of your agreement. Interest rates are usually lower for this type of financing option because there isn’t one set interest rate; instead, banks determine daily rates based on borrowing power and update those rates every 24 hours.
You can finance the cost of your bathroom renovation, including materials and labor with these types of loans. You can apply online or in-person at your local bank to finance a bathroom renovation project that will take place typically within the next 12 months. These are also very popular bathroom remodel loans that you can make monthly payments on, just like a home equity loan.
The simple solution: get estimates from local contractors for your project. Get estimates from reputable and experienced contractors in your area so you can get a fair assessment to present to the finance of your project. If you’re in the Portland, OR, area, contact RUPP Family Builders for a free estimate on your bathroom remodeling project. Their knowledgeable and friendly staff will guide you through the entire remodeling process and leave you with a bathroom that’ll be worth every penny, no matter how you finance your bathroom remodel!
A personal loan is an option if you’re financing over time with monthly payments, just like a home equity loan; however, it’s typically used for debt consolidation rather than bathroom renovations. Personal loans are unsecured loans, which means there is no collateral backing up your loans as there would be with a mortgage or car loan. Additionally, the interest rates on an unsecured loan like this are typically much higher than HELOCs and home equity loans because there is less security.
You can finance a bathroom renovation with a credit card; however, we don’t usually recommend this as an option. This is basically another form of an unsecured loan. Credit cards have high-interest rates and you’re only allowed to finance what your credit limit allows. Like personal loans, it’s not ideal because of the finance charges you would accrue if you didn’t make your monthly payments every time. If you miss monthly payments, it can really affect your credit history, which might prevent you from taking out secured loans in the future for various things.
One way to finance a bathroom renovation with a credit card is by setting up auto-payments so that when your statement is generated at the end of each billing cycle, the funds for your monthly payments will be deducted in full from your credit card to pay off the balance.
If you have equity in your home, refinancing could be a great way to pay for your remodel and consolidate any debt. Depending on interests rates, you could end up with lower payments. This option can potentially change your monthly home mortgage payment, so consult your mortgage loan representative for further details and options.
Bathroom renovations can get expensive, but bathroom remodel loans and other bathroom remodel financing options exist. Whether you finance with a home equity line of credit, home equity loan, personal loan, credit card or mortgage refinance loan, finance companies are there to ease the financial burden for homeowners who want to revamp their bathrooms without breaking the bank.
Most of them, unsecured loans and secured loans, allow monthly payments. Interest rates for the different financing options will vary drastically. Availability, eligibility, and interest rate qualification for these bathroom remodel loans (a home equity loan, personal loans, HELOCs, etc.) will largely be based on credit history, credit score, presence of other personal loans or home equity loans, past financial decisions, current financial state, etc. To judge whether you’ll actually be able to make those monthly payments back to the people who are providing those bathroom remodel loans.
To find out how much financing you’ll need for your project, get a few estimates from local contractors. One such contractor you should consider if you’re in the greater Portland, Oregon area is RUPP Family Builders. Their professional team of remodeling contractors provides top-notch customer service and craftsman-quality products for each and every customer. Get a free quote from them today!
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