Even after your real estate agent helped you find your dream home, there are a few things you might want to improve such as a new deck, a larger kitchen, an updated heating system, or a new roof. For many, simply paying for an improvement isn’t possible, but that doesn’t mean your home improvement dreams can’t become a reality. There are a few options for financing your improvements.

Refinance Your Mortgage

This can be a simple way to pay for a big improvement, especially if your mortgage isn’t favorable to you in the first place. You do need to be careful if you take this route. You don’t want to refinance an improvement that will not last as long as the loan. Using the loan to replace a roof that will last a couple decades may be worth it. Refinancing for improvements like a paint job that won’t last long is not always worth it.

Construction Loan

These are used to pay for major home projects such as building an addition. These loans can be hard to secure and have a lot of requirements. Often cash is not released until certain stages of the project are complete. Depending on the size of the project, this may be an attractive option.

Home Equity Loan

These are easier to secure than a construction loan. Home equity loans are secured by your house and are a type of second mortgage. The pros include low interest and easier to qualify for than some other options. The cons include the temptation to use the cash for other purposes thus creating a large amount of debt and large closing fees.


For smaller projects, it may be worth waiting to make the renovation until you have the cash to pay for it. This is especially wise for renovations that may not last long. 

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