If you want to make some changes to your home, you might first start by dreaming big. When you start looking into the financial aspect of remodeling, however, you might start to feel as if your dreams are being crushed. Current economic conditions make people want to remodel and repair their existing homes instead of buying new ones. However, remodeling is not cheap itself. There are several options you can use in terms of financing your remodeling project. Before you begin, you will want to determine what improvements you want to make and how much they will cost. Depending on what you decide to do, you could end up adding a lot of value to your home during the remodeling process. Whatever you invest, you should be able to get back if you sell your home in the future. Here are some of the financial options when you are thinking or remodeling a portion of your house.


If you have a small scale project and you have been saving money for it for a while, paying in cash is an attractive choice. You will not have to rack up debt or worry about any high interest rates. However, you also want to make sure that you are not depleting your emergency savings funds. Use only money that you have allocated for the project so that you can protect the future of your finances and overall budget.

-Credit Card

Smaller projects are sometimes well-suited with credit cards. You will have to pay high interest rates and late fees if you do not pay your cards off, but if you have the money to cover the charges, using the cards is not a problem. Make sure that you use a credit card that has a high limit and a low interest rate to protect your interests.

-Home Equity Credit

If you have equity built up in your home, you could get a loan that uses your home as collateral for the credit you need. You will pay interest only on what you draw from the credit and the interest is tax-deductible as well. There are a variety of interest rates that go along with this financing and the payment rates fluctuate as well, but you will know what you are approved to spend before you begin your project.

-Personal Loan

Personal loans are not tied in with your home and use other things for collateral like your savings, bonds, and other financial assets. You can borrow up to $25,000, depending on your situation, but you might have a rather high interest rate that is not tax deductible.

Think through each option and see which works best for you and your remodeling situation before you sign any paperwork or make any commitments.

Crgordon.com is a website featuring a company in Virginia Beach that has over 20 years of experience in home construction including home remodeling and design aspects.