The BACK Design Center
Local and Flexible Financing Options for Your Dream Home Remodel
Options
Ready to explore financing options?
Still have questions?
Contact us today, and we’ll connect you with one of our local financial partners to start the application process. Let’s make your home remodel a reality!
Comprehensive remodeling services
What’s the Best Way to Finance Your Remodeling Project?
Planning a home remodel? One of the key decisions homeowners face is how to finance the project. Before diving into the exciting parts—like building a wish list and gathering design ideas—you’ll need to ask yourself some important financial questions, including: “What can we realistically afford to invest in our home?”
Every remodeling project is unique, and each client’s financial situation is different. Some clients may have significant equity in their homes, others may have a down payment ready, while some may have great credit but no available down payment. No matter your situation, sitting down with your bank or a financial advisor early on will help you explore the best financing options for your remodel.
Expand beyond bathrooms
Where to Start
The first step is to assess your current financial position:
- How’s your credit?
- What is your home currently worth?
- How much do you owe on your mortgage?
- How much value will your project add to your home?
A lender will use your Loan-to-Value (LTV) ratio to help determine how much you can borrow, as well as your Debt-to-Income (DTI) ratio. These factors, along with others, are important to review with your financial institution to avoid moving forward with plans only to discover you don’t qualify for the type of financing you need.
Guidance you can trust
How Much Will Your Remodeling Project Cost?
Work closely with your remodeler to get a clear picture of the project’s cost. At BACK Construction, each project is assigned both a project developer and an estimator, ensuring thorough inspections and a detailed estimate. While unforeseen issues, like structural surprises, can arise once work begins, we recommend building a small buffer into your budget to cover any unexpected expenses
What Are My Financing Options?
01 Home Equity Line of Credit (HELOC):
A HELOC allows you to borrow based on your home’s equity, functioning like a high-limit credit card. You only pay interest when you use the funds, and rates are typically adjustable. This option provides flexibility, especially if you want to have funds available for future needs.
02 Home Equity Loan:
03 Mortgage Refinance:
Refinancing your existing mortgage to include the cost of the remodel consolidates everything into one monthly payment. If your current mortgage rate is low, however, a second mortgage might be a better alternative.
