Money Management

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So, you’re dreaming of a brand-new kitchen, a luxurious bathroom, or maybe an entire addition to your home. But then reality kicks in: how do you pay for it? Financing a renovation can feel overwhelming, especially when most of us don’t have a spare $50,000 lying around.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. To help you out, we’ve rounded up the best financing options with insights from Liz Young, Founder and CEO of Realm, a platform that connects homeowners with expert guidance, reliable contractors, and customized renovation plans. Here are some ways to make that dream home a reality — without breaking the bank.1. Home equity line of credit (HELOC)If you have some solid equity built up, a home equity line of credit could be your best friend. Think of a HELOC as a credit card backed by your home’s value. You can borrow against it as needed and only pay interest on what you actually spend.Liz Young explains, “A HELOC lets you tap into your home equity without messing with your first mortgage, which might have a much lower rate than current market averages.” With today’s average HELOC rates around 8.38%, this is a more affordable option for many homeowners.To break it down, imagine you want a modest bathroom remodel (national average cost according to Realm: $16,593). With a 15-year HELOC rate at 8.38%, that comes to about $162 per month — roughly the price of one fancy dinner out per month. “Many homeowners find projects way more affordable when they focus on monthly payments instead of the total cost,” Young adds. For larger projects, like an addition costing $168,947, monthly payments would be around $1,652, which could still be more manageable than paying upfront.2. Cash-out refinanceIf your mortgage rate is on the higher side, a cash-out refinance might be worth considering. This involves refinancing your existing mortgage with a larger loan, giving you the difference in cash to use toward your renovation. It’s like getting a mortgage upgrade — with bonus cash.Interested in refinancing? Click here for our curated list of the best refinance lenders.However, this option only makes sense if today’s mortgage rates are equal to or lower than your current rate. “You don’t want to give up a great rate just to finance a remodel,” Young says. Plus, a cash-out refinance comes with closing costs, so you’ll need to factor those in when comparing this to other options.3. Home improvement loanA home improvement loan can be ideal if you have less equity or aren’t looking to tap into your home’s value. Home improvement loans are typically personal loans, meaning you don’t need collateral (like your house) to qualify. They’re straightforward: you get a lump sum upfront and make fixed monthly payments over a set term.While these loans can be convenient, they often have higher interest rates than HELOCs or cash-out refinances. Young advises, “If you’re comparing options, a personal loan should be a last resort if you have enough equity for a HELOC or cash-out refinance.” Still, it’s a great option for those who want fixed terms and predictable payments.4. 0% APR credit cardIt might sound surprising, but a 0% APR credit card can be a quick, flexible way to fund smaller renovations, like a guest bathroom facelift or a laundry room upgrade. These cards offer an introductory 0% APR period, often for anywhere from 12-21 months, which means you won’t pay any interest if you can pay it off in time.”Using a 0% APR credit card can work well for low-cost, short-term projects,” Young notes. Just keep an eye on the calendar, as go-to interest rates will kick in after the intro period. If you can pay off the charges within that time, this option is like free loan money.5. Renovation-specific financing programsFinally, renovation-specific financing programs can be a solid choice, especially if you’re dealing with energy-efficient upgrades. Certain lenders and even government programs offer loans specifically for energy-saving projects, like solar panel installations or high-efficiency heating and cooling systems.”Homeowners often overlook programs like these,” says Young, “but they’re excellent if you’re planning a renovation with a green angle.” Look into local programs or even check with your utility company to see if it offers special financing for energy-efficient upgrades.Common renovation financing mistakes (and how to dodge them)A renovation can add value to your home, but it can also add unnecessary stress. Here are some common traps to avoid, straight from Young’s renovation playbook.Assuming every renovation adds valueSome projects, like kitchens and bathrooms, tend to increase home value, but others might not. Be strategic and research which upgrades offer the best return on investment.Ignoring monthly payment costsSticker shock from a six-figure estimate can scare anyone. But focusing on the monthly payment instead of the total cost can make renovations seem much more affordable. “A $58,000 kitchen remodel might sound huge, but with a 15-year HELOC, the monthly payment is around $568 — a lot closer to a car payment than a huge, upfront expense,” explains Young.Not setting a realistic budgetIt’s easy to overshoot on a renovation. Young emphasizes, “Start with a clear budget, and don’t get wooed by options outside your price range.” Getting quotes and factoring in unexpected costs (they will happen!) will help you avoid budget blowouts.In the end, financing your home renovation is all about picking the right option for your situation, understanding the long-term impact, and dodging common pitfalls. So go ahead, plan that new kitchen or add a dreamy bathroom, and make sure your financing choice keeps the project stress free (and your budget intact).Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

So, you’re dreaming of a brand-new kitchen, a luxurious bathroom, or maybe an entire addition to your home. But then reality kicks in: how do you pay for it? Financing a renovation can feel overwhelming, especially when most of us don’t have a spare $50,000 lying around.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

To help you out, we’ve rounded up the best financing options with insights from Liz Young, Founder and CEO of Realm, a platform that connects homeowners with expert guidance, reliable contractors, and customized renovation plans. Here are some ways to make that dream home a reality — without breaking the bank.

1. Home equity line of credit (HELOC)

If you have some solid equity built up, a home equity line of credit could be your best friend. Think of a HELOC as a credit card backed by your home’s value. You can borrow against it as needed and only pay interest on what you actually spend.

Liz Young explains, “A HELOC lets you tap into your home equity without messing with your first mortgage, which might have a much lower rate than current market averages.” With today’s average HELOC rates around 8.38%, this is a more affordable option for many homeowners.

To break it down, imagine you want a modest bathroom remodel (national average cost according to Realm: $16,593). With a 15-year HELOC rate at 8.38%, that comes to about $162 per month — roughly the price of one fancy dinner out per month. “Many homeowners find projects way more affordable when they focus on monthly payments instead of the total cost,” Young adds. For larger projects, like an addition costing $168,947, monthly payments would be around $1,652, which could still be more manageable than paying upfront.

2. Cash-out refinance

If your mortgage rate is on the higher side, a cash-out refinance might be worth considering. This involves refinancing your existing mortgage with a larger loan, giving you the difference in cash to use toward your renovation. It’s like getting a mortgage upgrade — with bonus cash.

Interested in refinancing? Click here for our curated list of the best refinance lenders.

However, this option only makes sense if today’s mortgage rates are equal to or lower than your current rate. “You don’t want to give up a great rate just to finance a remodel,” Young says. Plus, a cash-out refinance comes with closing costs, so you’ll need to factor those in when comparing this to other options.

3. Home improvement loan

A home improvement loan can be ideal if you have less equity or aren’t looking to tap into your home’s value. Home improvement loans are typically personal loans, meaning you don’t need collateral (like your house) to qualify. They’re straightforward: you get a lump sum upfront and make fixed monthly payments over a set term.

While these loans can be convenient, they often have higher interest rates than HELOCs or cash-out refinances. Young advises, “If you’re comparing options, a personal loan should be a last resort if you have enough equity for a HELOC or cash-out refinance.” Still, it’s a great option for those who want fixed terms and predictable payments.

4. 0% APR credit card

It might sound surprising, but a 0% APR credit card can be a quick, flexible way to fund smaller renovations, like a guest bathroom facelift or a laundry room upgrade. These cards offer an introductory 0% APR period, often for anywhere from 12-21 months, which means you won’t pay any interest if you can pay it off in time.

“Using a 0% APR credit card can work well for low-cost, short-term projects,” Young notes. Just keep an eye on the calendar, as go-to interest rates will kick in after the intro period. If you can pay off the charges within that time, this option is like free loan money.

5. Renovation-specific financing programs

Finally, renovation-specific financing programs can be a solid choice, especially if you’re dealing with energy-efficient upgrades. Certain lenders and even government programs offer loans specifically for energy-saving projects, like solar panel installations or high-efficiency heating and cooling systems.

“Homeowners often overlook programs like these,” says Young, “but they’re excellent if you’re planning a renovation with a green angle.” Look into local programs or even check with your utility company to see if it offers special financing for energy-efficient upgrades.

Common renovation financing mistakes (and how to dodge them)

A renovation can add value to your home, but it can also add unnecessary stress. Here are some common traps to avoid, straight from Young’s renovation playbook.

Assuming every renovation adds value

Some projects, like kitchens and bathrooms, tend to increase home value, but others might not. Be strategic and research which upgrades offer the best return on investment.

Ignoring monthly payment costs

Sticker shock from a six-figure estimate can scare anyone. But focusing on the monthly payment instead of the total cost can make renovations seem much more affordable. “A $58,000 kitchen remodel might sound huge, but with a 15-year HELOC, the monthly payment is around $568 — a lot closer to a car payment than a huge, upfront expense,” explains Young.

Not setting a realistic budget

It’s easy to overshoot on a renovation. Young emphasizes, “Start with a clear budget, and don’t get wooed by options outside your price range.” Getting quotes and factoring in unexpected costs (they will happen!) will help you avoid budget blowouts.

In the end, financing your home renovation is all about picking the right option for your situation, understanding the long-term impact, and dodging common pitfalls. So go ahead, plan that new kitchen or add a dreamy bathroom, and make sure your financing choice keeps the project stress free (and your budget intact).

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
After 15 years with the same credit card, you might be ready for a change. That’s especially true if your old card doesn’t have much to offer. Assuming you’ve paid on time, your credit score is probably good enough to qualify for the best credit cards now.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But when you aren’t using an old card anymore, you need to decide what to do with it. The conventional wisdom is to avoid closing old credit cards, because it will hurt your credit score. If you’re worried about that, I have some good news.Closed credit cards stay on your credit report for up to 10 yearsThe age of your credit accounts affects your credit score. All other things being equal, it’s much better to have a 15-year credit history than a five-year credit history. That’s the reason behind the advice to keep old credit cards open. If you close them, it will lower your overall account age.There’s a key point this advice misses. Closed credit cards don’t immediately drop off your credit file. They stay there for a certain amount of time, depending on whether the card had any reported payment issues. Here’s how it works:Closed accounts with no late payments stay on your credit report for 10 years. During that time, they will continue to positively impact your credit score.Delinquent accounts and accounts with late payments stay on your credit report for seven years. These will negatively affect your credit score, but the impact will diminish over the years.Don’t worry that closing an old credit card will immediately lower your credit account age. That’s not how it works. If it’s an account with no payment issues, it won’t come off your credit for 10 years. At that point, you’ll presumably have other credit cards with long credit histories to effectively take its place.Tired of using an old credit card without many benefits? A travel card is a great way to upgrade your wallet. They earn rewards you can redeem for travel expenses, and many of them offer special perks, including free access to airport lounges and elite status with hotels. Check out our list of the top travel rewards cards to find one that’s right for you.Your credit utilization could go upYour credit history will be fine after you close a credit card. There’s another way this could affect your credit score, though. If you’re carrying any balances on other credit cards, your credit utilization could increase. This is one of the biggest factors in your credit score.Credit utilization is the portion of your credit that you’re using. Every month, card issuers report the balances and credit limits on your cards. Let’s say you have $5,000 in total balances and $20,000 in credit limits. Your credit utilization is 25%, which is pretty good.You decide to close your 15-year old credit card, which has a $0 balance and a $10,000 credit limit. Now, you have the same $5,000 in balances on your other cards, but with only $10,000 in credit limits. Your credit utilization goes up to 50%, which will hurt your credit score.The best way to keep your credit utilization low is to pay off your cards every month. You also avoid interest charges this way. But if you’re currently in debt, you may want to wait until you’ve paid it off to close any credit cards.Deciding to close a credit cardIf you’re not using a credit card anymore, there’s nothing wrong with closing it, even if you’ve had it for 15 years or longer. The idea that closing old cards hurts your average account age is a misconception.The real risk to your credit score when you close a card is your credit utilization. But if you don’t carry large balances on your credit cards, then this won’t be an issue, either.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

After 15 years with the same credit card, you might be ready for a change. That’s especially true if your old card doesn’t have much to offer. Assuming you’ve paid on time, your credit score is probably good enough to qualify for the best credit cards now.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But when you aren’t using an old card anymore, you need to decide what to do with it. The conventional wisdom is to avoid closing old credit cards, because it will hurt your credit score. If you’re worried about that, I have some good news.

Closed credit cards stay on your credit report for up to 10 years

The age of your credit accounts affects your credit score. All other things being equal, it’s much better to have a 15-year credit history than a five-year credit history. That’s the reason behind the advice to keep old credit cards open. If you close them, it will lower your overall account age.

There’s a key point this advice misses. Closed credit cards don’t immediately drop off your credit file. They stay there for a certain amount of time, depending on whether the card had any reported payment issues. Here’s how it works:

• Closed accounts with no late payments stay on your credit report for 10 years. During that time, they will continue to positively impact your credit score.
• Delinquent accounts and accounts with late payments stay on your credit report for seven years. These will negatively affect your credit score, but the impact will diminish over the years.

Don’t worry that closing an old credit card will immediately lower your credit account age. That’s not how it works. If it’s an account with no payment issues, it won’t come off your credit for 10 years. At that point, you’ll presumably have other credit cards with long credit histories to effectively take its place.

Tired of using an old credit card without many benefits? A travel card is a great way to upgrade your wallet. They earn rewards you can redeem for travel expenses, and many of them offer special perks, including free access to airport lounges and elite status with hotels. Check out our list of the top travel rewards cards to find one that’s right for you.

Your credit utilization could go up

Your credit history will be fine after you close a credit card. There’s another way this could affect your credit score, though. If you’re carrying any balances on other credit cards, your credit utilization could increase. This is one of the biggest factors in your credit score.

Credit utilization is the portion of your credit that you’re using. Every month, card issuers report the balances and credit limits on your cards. Let’s say you have $5,000 in total balances and $20,000 in credit limits. Your credit utilization is 25%, which is pretty good.

You decide to close your 15-year old credit card, which has a $0 balance and a $10,000 credit limit. Now, you have the same $5,000 in balances on your other cards, but with only $10,000 in credit limits. Your credit utilization goes up to 50%, which will hurt your credit score.

The best way to keep your credit utilization low is to pay off your cards every month. You also avoid interest charges this way. But if you’re currently in debt, you may want to wait until you’ve paid it off to close any credit cards.

Deciding to close a credit card

If you’re not using a credit card anymore, there’s nothing wrong with closing it, even if you’ve had it for 15 years or longer. The idea that closing old cards hurts your average account age is a misconception.

The real risk to your credit score when you close a card is your credit utilization. But if you don’t carry large balances on your credit cards, then this won’t be an issue, either.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More