How Do Home Improvement Loans Work? 5 Ways to Spruce Up the House Without Breaking the Bank

a man in a kitchen

Using a home improvement loan to tidy up your house can be an excellent idea. However, you’re going to want to keep your interest rate, monthly payment, and the life of the loan in mind. Homeowners that use a home renovation loan the right way can really spruce up their living quarters without taking on massive debt.


Whether you’re rethinking your kitchen design, visiting a showroom to get ideas for your bathroom, or finding a special offer on cabinets and appliances, here’s how you can use the life of the loan to your ultimate advantage.


1. Start with the kitchen.

Borrowers need to get the biggest return on their loan investment, right? Especially when you start to factor in interest payments, it’s often a good idea to start with the heart of the home: the kitchen. Even if you’re not crafting your dream kitchen, borrowers can use their loans to update appliances which can add immense value to the home. Talk to your lender about your plans for a new kitchen and try to see if you can’t score a special rate. As for finding a general contractor, it’s as easy as a Google search. Say you live in the Denver area. Simply search “Denver kitchen designers” and watch as the internet finds you a solution. Kitchen renovation and affordability can go hand-in-hand.


2. Modernize the bathrooms.

Homebuyers probably already have a mortgage loan with their financial institution. Adding on additional debt can be intimidating. Again, think about your ROI here. For some peace of mind, head to the bathroom. Bathrooms are another major selling point for prospective homebuyers and if you’re able to increase the value of your home, the response can be incredibly positive. For this type of project, you’re going to want to look for special fixed rate offers. Bathroom renovations are typically quicker products so you don’t want a variable rate hanging over your head for years to come. A fixed-rate loan is typically in your best interest here.





3. Touch up the accents.

From switching up textures to adding in some accessories, playing with accents in your home can be an excellent use of your loan money, especially if you have a fixed interest rate. Whether you’re replacing a counter or adding a tile backsplash, there might be some surprises in store when you update some of the outdated fixtures and furnishings in your home. Even something as simple as buying new storage drawers can have an impact.


4. Break out the paint.

There are few things in life that a fresh coat of paint can’t solve. Maybe you’re tired of the color of one of your bedrooms. Perhaps the bathroom is sporting a strange mint green color that looks like it belongs in a 50s salon. Or it could simply be time to switch things up a bit. Repainting your home, be it the interior or exterior, can add some immense curb appeal and won’t require a massive high-rate loan to achieve. Plus, you don’t even have to schedule time with contractors as this is an easy enough DIY project.





5. Swap out the fixtures.

Faucets and light fixtures may not seem like major focal points but, over time, you start to notice them more and more. It could be that one kitchen faucet that looks a little calcified or an overhead light that doesn’t match the rest of your decor. Using a low-rate loan to tidy some of these inconveniences up is a great use of your funding.


From putting in tile to installing new cabinets, there are plenty of affordable projects you can take on with a low-rate loan. Look for online banking offers and meet with your financial institution to discuss a loan and see what you can accomplish in your home.