Checklist: Financing Your Remodeling Project

Talk to lenders about your options.

Know that lenders are concerned about income, debts, credit history and property value.

Consider a secured loan when you want to borrow more money, get a lower interest rate or reduce taxes.

Refinance an existing loan if you have enough equity and if the rates are two points lower now than when you initially borrowed the money.

Use a home equity line of credit that is secured by your home so that your interest is tax deductible.

Take out a home equity loan to get fixed rates and payments.

Consider a homeowner loan that is secured by your property. Use a value added loan when the improvement you make will have a substantial impact on the market value of your home.

Do your research before using contractor financing.