TENCU Chronicles

Discover the various options available to finance your home renovation

1. Home Equity Loan

Tap into the equity of your house with a fixed-rate loan. This loan is ideal for projects with a known cost or smaller scopes, as it provides a lump sum and predictable monthly payments.

2. Home Equity Line of Credit (HELOC)

Access a line of credit based on your home equity, allowing you to draw funds as needed during the renovations. This is a flexible option when the project's cost is uncertain or if you prefer to pay for expenses incrementally.

3. Cash-Out Refinance

If you've built up substantial equity, consider a cash-out refinance. By refinancing your mortgage and borrowing against your equity, you'll receive the difference in cash. Securing a favorable interest rate and carefully evaluating the extended repayment period is essential.

4. Personal Loan

Unsecured personal loans offer flexibility, as they don't rely on your property as collateral. However, higher interest rates may apply due to the increased lender risk. Personal loans are suitable for smaller renovations or when you have limited home equity.

5. Credit Cards

While not suitable for significant renovations, low-interest credit cards or those with cash-back rewards are great for more minor expenses. To avoid interest charges, aim to pay off the balance promptly, maintaining a good credit score while enjoying your upgrade.