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How to Pay For a Bathroom Remodel

By Jakemontgomery @LTDOnlineStores
How to Pay For a Bathroom Remodel

Is it time to remodel your bathroom? Maybe it has wear and tear from so much usage over the years, or maybe you are wanting to boost your home’s value. Either way, bathroom remodeling can be a smart investment decision, but many times a costly one. There are many things in a bathroom remodel that are in your control; colors, materials, tiles, etc. But regardless of what options you go with, one thing’s for sure: you will need the money to pay for it!

Trade Winds Imports realizes that bathroom remodels are not always cheap, and in many cases, you may need to borrow money in order to get the job done right away. So here are some options to help you figure out which approach is best for you. Good luck, and remember to try to stay within the budget you promised yourself!

How to Pay For a Bathroom Remodel


Do Your Research and Set a Budget

If you’re lucky, you are a handy person or know someone who is. If that’s the case, great! This will help bring your labor cost down; you can either do it yourself or bribe friends with pizza and beer. If you’re anything like me, however, remodeling is not remotely in our list of fortes. 

First, decide on all the things you would like to have remodeled in your bathroom. Then, set a budget. Be reasonable, and maybe allow for wiggle room in case you decide to add on to it later on. If you don’t plan to do the work yourself, the first thing you should do before starting your bathroom remodeling process is to talk to a pro. Shop around and get quotes so you can compare and decide who is more suitable for you.

Who Can I Borrow Money From?

So now you have someone to do the work, but how do you plan to pay them and the materials needed to get the job done? If you’re fortunate enough to have the cash upfront to pay for this improvement cost, use it! Cash is always the preferred option to go with if you have it. Or maybe you have a family member or friend who is willing to lend you the money, free of interest. 

If that’s not your case, talk to your bank and see what options they may have for you in regards to borrowing money. They can sit down with you and walk you through their options, rates, etc. If your bank is not a good match for you, don’t get discouraged! There are other lenders you can reach out to in order to get the financial help you need. You won’t find a home improvement loan that is a perfect fit for everyone, so do your research and see which one is right for YOU.

How to Pay For a Bathroom Remodel


Jessica Merritt has a very useful and informative article on home improvement loans, and she suggests these lenders: Alliant Credit Union, Discover, LoanDepot, Bank of America, and Guaranteed Rate.

She also highlights things like minimum FICO credit score, maximum debt-to-income ratio, and maximum combined loan-to-value-ratio required from each. This information is useful to know and helpful in ruling out lenders that might not be a good fit. As a side note, your FICO credit score is a helpful thing to know; it can help determine your approval odds without actually running your credit.

Qualifying for a Loan

Knowing your credit score can save you time. It can also help you determine if you have what it takes to qualify for a loan, or if there are any areas in which you need to work on first.

-Credit Score: you can order a free copy of your credit report on AnnualCreditReport.Com. Credit scores are divided as follows:

Excellent (720–850)

Good (690-719)

Average (630-689)

Below Average (580-629)

Poor (<580)

How to Pay For a Bathroom Remodel


Ways to Pay for Bathroom Remodels

There are several options when it comes to paying for bathroom remodels. The easiest and preferred one is, of course, cash. But bathroom remodels can get pricey, so it’s understandable if cash is out of the question! Luckily there are other options:

Personal Loan

Personal loans are an alternative to using your home’s equity for financing. To qualify for the best rates, you will need good to excellent credit. If you’re looking for a shorter repayment period or your home doesn’t have much equity, this is a good option for you.

Home Equity Loan and Home Equity Line of Credit (HELOC)

Home equity loans and HELOCs: If you have equity in your home, a low-interest secured loan may be the better route for you. Both options are likely cheaper than personal loans and credit cards, with longer repayment terms and lower interest rates.

Mortgage/Cash-Out Refinance

You can refinance your existing mortgage into a higher loan amount and use the difference to pay for your renovation.

How to Pay For a Bathroom Remodel


Alternative Ways to Pay for Bathroom Remodels

After learning the different ways to pay for a bathroom remodel and the criteria involved, you may find that you don’t qualify for them. Luckily, Steve Nicastro highlights some alternative options. Some of these options may even get you lower rates!

Credit Unions

If your credit is poor or average, you may want to seek a personal loan from your local credit union. The maximum annual percentage rate at federal credit unions is 18%.

Credit Cards

(0% or low interest) Some credit cards reward you! Credit cards are a good option if you are able to pay off the balance fairly quickly. Some credit cards have higher interest rates than other ones; shoot for one with a low to none interest rate!

If you have excellent credit and a small- to a medium-sized home improvement project, you can apply for a 0% interest credit card to cover the expenses.

Federal Programs 

Some government programs can help pay for a home renovation. Check out the Federal Housing Administration website for a list of your options.

Bathroom remodeling can be time-consuming and costly, but you’ve got this. Remember, start by doing your research and setting a budget. Once you’ve been approved and are ready to start your project, don’t forget to check out Trade Winds Imports for your bathroom remodel needs. We have tips on How to Remodel a Shower on a Budget, shower kits to get the job done, and much more. Explore around and have fun!

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