If more time under your roof is opening your eyes to improvements you’d like to make, you might be wondering whether to take out a home renovation loan. You’re not alone.
“We’ve seen a huge uptick in this conversation since a couple months after the pandemic started,” says Brian Walsh, senior manager of financial planning at fintech company SoFi. Homeowners “have the time and their attention placed on something they might not have for years.”
Indeed, spending on home improvements and repairs could reach $430 billion by the second half of 2022 before slowing down, according to the Joint Center for Housing Studies of Harvard University.
The right financing can put a renovation within reach. Here are some options to help you pay for your home renovation and key questions to consider.
Should You Get a Home Renovation Loan?
“The million-dollar question is: Is now the right time?” says John Ulzheimer, a credit expert who has worked at FICO and the credit bureau Equifax.
Act now? Is this renovation must-do or nice to have? Some home renovations are necessary because they involve structural or mechanical repairs, such as fixing a foundation or installing a new HVAC system. Other projects are purely cosmetic.
Regardless, property value must be a key factor in your decision to finance a home renovation, Ulzheimer says.