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Should I use a home equity loan for renovations?

By Bob Millaway, South Jersey Community Expert & REALTOR®

Home equity loans offer fixed rates and predictable payments, making them a solid choice for large renovations. You borrow a lump sum and repay it over 5 to 15 years. The interest may be tax-deductible if used for home improvements. However, your home is collateral, so missing payments puts your home at risk. Compare rates with HELOCs and personal loans. Only borrow what you need and have a clear repayment plan.

Why It Matters

Home equity loans typically offer lower rates than personal loans, but using your home as collateral means you must be confident in your ability to repay.

Related Questions

What renovations add the most value? Should I hire a general contractor or manage the project myself? How do I find a trusted contractor for my renovation? How do I budget for a home renovation? Do I need permits for a remodel in New Jersey?

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