If you’ve been staring at the four walls of your home since March, you might feel an itch to finally finish your basement or update your bathroom tiles. As long as you’re at home, you might as well enjoy what you’re looking at, right?
According to a survey by online lender LightStream, 73% of homeowners are planning a home improvement project this year. Nearly two-thirds of homeowners planning renovations will use savings, the survey says. Those who don’t have savings or choose not to spend it will need to weigh their options for financing their renovation projects.
The best way to pay for your project depends on factors like your home equity, credit and goals for the project. Here are six types of home improvement loans and how each works.
1. Cash-out refinance
The economic effects of COVID-19 have driven mortgage rates down sharply, making cash-out refinance a popular recommendation