What Type Of Loan Should I Get To Remodel My Bathroom?

Homeowners often invest in upgrades that improve the bathroom and increase their home’s value. A bathroom remodeling project can be as small or large as your budget permits. This type of home improvement project is notoriously expensive. Installing a new tub, shower, shower door, or vanity, and adding faucets, fixtures, and finishes can quickly add up. No matter the scale of your bathroom remodels, it’s important to find the right financing option for your home improvement project.

Use a personal loan to finance a bathroom remodel.

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Personal loans feature fixed interest rates and fixed monthly payments for a fixed timeline. Personal loans are easy to plan for, and if you have a great credit score, you can qualify for a lower interest rate and no origination fee. This type of loan is unsecured, meaning it doesn’t require collateral. Homeowners can even apply for personal loans online. This is a good option for homeowners who don’t want to borrow against the equity in their homes and can qualify for a loan with the best interest rates and terms.

The best way to ensure you have a positive remodeling experience is to work with experienced installation specialists known for flawless workmanship and award-winning customer service. Lux Bath is Pittsburgh’s local dealer for KOHLER premium shower solutions. The KOHLER shower pros can transform any shower space with customized showers that improve the functionality and accessibility of your bath. KOHLER Luxstone showers can be customized to your preference. No matter what the desired style of your bathroom is, the local KOHLER representatives have the Lux Bath Kohler showers that will transform your shower space and the value of your home.

Or, you can consider a home equity loan.

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Home equity loans offer homeowners fixed interest rates, fixed repayment terms, and fixed monthly payments. This type of loan offers a lower interest rate for borrowers with a good credit score. Home equity lines of credit (HELOCs) offer homeowners a line of credit that they can borrower against rather than giving a fixed loan amount. HELOCs also come with favorable interest rates and loan terms. Home equity loans and HELOCs are good options for borrowers who want to tap into their home’s equity to finance home improvement projects.

Another type of loan that gives borrowers a lump sum is a hard money loan or bridge loan. Unlike traditional loans, bridge loans are temporary loans that are based on the value of the property as collateral rather than the credit history of the borrower. Bridge financing is a popular choice for property flippers in need of a short-term loan to purchase a new house while waiting for the sale of their current home. This type of financial product does have a higher interest rate than traditional loans, but borrowers are meant to repay the loan within three years. Bridge loans have a far quicker application and funding process than traditional mortgages or loans from banks.

Northwest Private Lending is a bridge loan lender offering a variety of equity-based financial products for all types of real estate transactions. They specialize in bridge loans for borrowers who want to purchase a new home before their old home sells. The lender enables homebuyers to purchase cash only listing that can’t be financed by traditional loans.

Certain types of credit cards may be an option, too.

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It is possible to finance a bathroom remodel with certain types of credit cards. Balance transfer credit cards, also called 0% APR credit cards, come with no interest on purchases for up to 18 months. Upon the expiration of the promotional period, the interest rate will reset and you’ll have to make interest payments on any outstanding balance. One of the biggest drawbacks to financing with a credit card is the sticker shock of paying off a balance with a high interest rate. This financing option is best for homeowners who need to borrow a small sum and can pay the balance in full before the expiration of the promotional period.

Whether increasing the value of your home to get the best sale price or improving the functionality and accessibility of your bath, it’s a good idea to explore all of your financing options.

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