Home Renovation Calculator

If you’re exploring ways to finance your renovation project, there are several personal loan products that can provide the flexibility you need. Common options include:

• Unsecured Personal Loans: These loans don’t require collateral and typically offer quick funding, making them a convenient choice for small to medium-sized renovations.
• Home Equity Loans and HELOCs: Tapping into the equity you’ve built in your home, a home equity loan or line of credit (HELOC) can provide larger funding amounts, often at lower interest rates than unsecured loans.
• Credit Cards: For smaller or more phased renovation projects, a low-interest or 0% promotional credit card may help bridge short-term expenses.
• Renovation-Specific Loans: Some lenders offer loans tailored specifically for renovation, with terms and rates suited to home improvement projects.

Each option comes with its own eligibility requirements, interest rates, and repayment terms, so it’s important to compare and choose the product that fits your financial goals and renovation needs.

When it comes to financing your next home renovation, tapping into your home’s existing equity can be a smart option. Several home equity products are commonly used for funding improvements:

• Home Equity Loans: Sometimes called a second mortgage, this option gives you a lump sum with a fixed interest rate and predictable repayment schedule—great for projects with a clear budget.
• Home Equity Lines of Credit (HELOCs): Think of this as a credit card with your house as collateral. You can draw funds as needed, usually with a variable rate, making it ideal for ongoing or phased renovation work.
• Cash-Out Refinance: This involves refinancing your mortgage for more than you owe and pocketing the difference—potentially useful if you want to lock in a new rate while funding large-scale improvements.

Before choosing, consider how much you need, your current equity, and how comfortably you can manage the repayment terms.

In some instances, using a credit card for certain renovation expenses can offer flexibility—especially for smaller projects or unexpected costs that pop up mid-renovation.

Here are a few points to consider:

• Many credit cards offer introductory 0% APR periods, which can give you breathing room to pay off expenses over time without immediate interest.
• Rewards credit cards (like those from Chase, American Express, or Capital One) could earn you cash back, points, or miles on your renovation purchases.

However, keep in mind:

• Regular credit card interest rates often run much higher than rates for personal loans or home equity lines of credit, which can add up quickly if you’re unable to pay off the balance promptly.
• Credit cards are best reserved for smaller renovation projects or as a backup for unplanned costs, rather than an all-in source for major remodels.

Before swiping for that new kitchen or bathroom, compare the long-term cost with other financing options to make sure you’re getting the best deal for your budget and goals.

Before you secure financing for your investment property, you’ll need to meet a few standard requirements. Most lenders will evaluate your creditworthiness—this means they’ll check your credit score, income stability, and existing debt to ensure you can repay the loan.

Additionally, an appraisal of the property is typically required to confirm its current value and to assess its potential after renovations. This step helps both you and the lender gauge whether the investment makes financial sense.

In short, expect a thorough review of your finances and a professional assessment of your property before funds are disbursed.

Not every state gives you the green light on home equity products for your renovation project. For example, some lenders won’t issue these loans or lines of credit in states like Alaska, Hawaii, Louisiana, Mississippi, Nevada, or South Dakota. Before you start planning your upgrades, make sure to check whether your property’s location qualifies for home equity financing options.