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Fund Your Home Remodel

Room under construction

Whether you’re planning to do the work yourself or hire a contractor, you have options available for financing a home remodel. Which option you choose will depend on the size of your remodeling project and the amount of equity you have in your home. Smaller projects can be paid for with a credit card, while larger projects might require funding from a personal loan or home equity line of credit (HELOC).

Credit Cards

A credit card is a convenient way to pay for smaller projects. The Royal Credit Union Platinum Rewards Visa® card has a low everyday APR, so you can make bite-sized payments over time. Our online application makes applying for a credit card quick and easy. Once your card is open, you can borrow and pay on it over and over again.

Personal Loans or Lines of Credit

You can use a personal loan or line of credit for any purpose, including remodeling. With a personal loan like our Homeowner Express loan, you receive a set amount of funds all at once for your project. A personal line of credit lets you borrow against your credit limit and repay the balance again and again, so you’ll pay interest only on the funds you actually use. Personal loans and lines of credit generally have lower limits and shorter repayment periods than a home equity line of credit. They also don’t involve a lien against your home.

Home Equity Line of Credit

A home equity line of credit, or HELOC, is a line of credit secured by your home. The amount you can borrow depends on how much equity you have available, meaning how much your home is worth minus any amount you still owe on your mortgage. Because your home is used as collateral, HELOC interest rates are often lower than other types of financing. You also get the advantage of making interest-only payments during the initial draw period, and there is a longer amount of time to repay the funds after the draw period ends.

In the end, if you don’t feel like remodeling your house and want to build a new one, we can help with that too! Learn more about our construction loans here.

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