4 Ways to Finance Your Home Renovation
1. Get a cash-out refinance2
With a cash-out refinance, you replace your current mortgage with a new mortgage for more than you owe. At closing, you receive the difference in cash in one lump sum. Here’s an example:Current Appraised Value of Home: $260,000
Original Mortgage Owed: $180,000
New Mortgage: $200,000
Cash Out: $20,000 (minus expenses)
Original Mortgage Owed: $180,000
New Mortgage: $200,000
Cash Out: $20,000 (minus expenses)
With your new mortgage, you’ll have closing costs and may have a new rate that changes your monthly mortgage payment. Use our refinance calculator to get a better idea of what to expect.
2. Open a HELOC
A HELOC allows you to borrow against your equity as needed over time. It’s a revolving line of credit like a credit card, but it usually has significantly lower rates. Use our HELOC calculator to see how much equity you may be able to tap into.3. Take Out a Home Equity Loan
With a home equity loan, you receive the funds upfront and all at once. You’ll have monthly payments with a fixed interest rate, so it stays the same even if rates go up in the market.4. Opt for a construction-renovation loan
United offers home loan solutions that let you finance the cost of the house plus renovations, so there's no need to pay for the improvements out of pocket or with a second loan. Whatever your dream renovation looks like, we’ll work with you to make it happen. Our mortgage experts are here to talk through your options and find the best one for your financial situation. To start the conversation, call 1-800-914-8224 or send us a message.1Not all borrowers will qualify. This is not a commitment to lend. Restrictions apply. Benefits listed may not apply to every borrower.
2Informational only; consult tax, legal, and/or accounting advisors before engaging in any transaction.
