How Will I Finance My Project?

  The majority of people who remodel their homes pay cash for the work. Others refinance their mortgage or pay for the project through a home equity loan, a second mortgage, a line of credit, or a personal loan from a bank, savings and loan, or credit union. Your remodeler may be able to help you secure financing, but you should investigate different sources of funding and compare the potential loans for the amount you qualify to borrow, the interest rate, terms and tax considerations.

   If you must obtain a loan to pay for a project, you should protect yourself by adding a clause to your contract stating that the contract is valid only if you obtain the financing you want at the interest rate you specify. If your remodeling project is to repair damages covered by your insurance, check with your insurance company to determine what your insurance policy covers before signing a contract.