Guides / Big projects
Paying for renovations and big repairs
Cash, home equity, personal loans and cards compared.
How you pay for a big project can cost as much as the project itself. Here are the common options and what to watch for.
Options
- Savings: no interest, and no risk to the home
- Home equity loan or line of credit (HELOC): often lower rates, but your home is the collateral
- Personal loan: no collateral, usually higher rates
- Credit cards: very high rates unless paid off quickly
- Contractor financing: read the terms carefully, including deferred interest
Before you borrow
- Get the total cost of borrowing in writing
- Compare at least two offers
- Make sure the payment fits your budget even if your income dips
General education, not financial advice. Better Home Budget isn't paid by any lender, insurer or contractor.