About the rates and financing information on this page. The rates, loan amounts, terms, fees, and other figures below are provided for general comparison and planning purposes. They are not loan offers or quotes, and actual terms vary by lender, borrower qualifications, location, market conditions, and other factors. Rates and program requirements can change, so confirm current terms directly with a lender before making a financial decision. Tax information here is general and educational, not tax advice: eligibility for a deduction or credit depends on your circumstances and current law, so consult a qualified tax professional and current IRS guidance before claiming one.
There is no single financing option that is best for every project. The right fit depends on how much you need to borrow, how much equity you have, how quickly you need the funds, your credit and financial situation, and the terms available to you. HELOCs may suit homeowners with equity who want to draw as costs arise, though rates are typically variable and your home secures the debt. Personal loans need no equity and can fund quickly, but rates run higher than secured borrowing. Contractor financing is convenient and sometimes promotional, but compare the full terms against what a bank or credit union offers. Use the comparison below as a starting point, then verify current rates, fees, repayment terms and eligibility directly with lenders.
| Option | Rate range | Equity required? | Best for | Watch out for |
|---|---|---|---|---|
| HELOC | 6–9% (variable) | Yes (20%+ equity) | Ongoing or multi-phase projects | Variable rate; 10-year draw period ends |
| Home Equity Loan | 7–10% (fixed) | Yes (20%+ equity) | Single large project, fixed budget | Closing costs ($2K–$5K) |
| Cash-out refinance | 6.5–8% (fixed) | Yes (substantial) | Large projects + rate improvement | Resets mortgage clock; closing costs |
| FHA Title I loan | 7–11% | No | Homeowners with limited equity | $7,500 unsecured; above that a lien is required, to a $25,000 cap; lender availability |
| Personal loan (unsecured) | 10–25% | No | Smaller projects; fast approval | Highest rates; shorter terms inflate monthly payment |
| Contractor financing | 0–30%+ (varies) | No | Convenience; 0% promo periods | Dealer fees added to loan; deferred interest traps |
| Credit card (0% intro APR) | 0% intro / 20–30% after | No | Projects under $10K; short timeline | Must pay off before promo period ends |
A HELOC (Home Equity Line of Credit) works like a credit card against your equity. Draw what you need, when you need it, during the draw period (typically 10 years). Rates are variable and tied to the prime rate. Interest-only payments are typical during the draw period, then full amortization begins.
A Home Equity Loan (HEL) is a lump sum at a fixed rate. You get the full amount upfront and repay at a fixed monthly payment. Better if you know your exact project cost and want payment certainty.
Contractor financing can make it convenient to arrange the project and the money in one place, and some providers offer promotional rates or deferred-interest periods. Before accepting an offer, compare the APR, loan term, monthly payment, fees, total amount financed and total repayment cost against what you can get directly from a bank or credit union. Pay particular attention to promotional financing: be sure you understand when the promotional period ends, what rate applies afterwards, and whether deferred interest could significantly increase what you owe.
Additionally, "same as cash" or "deferred interest" offers can backfire: if any balance remains at the end of the promotional period, you are often charged interest retroactively on the full original amount, not just the remaining balance.
Ask Remy about project costs, contractor considerations, and the questions worth asking as you plan your remodel.
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