The first option is to refinance your home mortgage loan and get cash out of the amount to pay for your remodel or home addition. The benefits of this approach are that you have only one loan for your home, the interest is usually tax deductible, and a single larger loan will usually have the lowest interest rate. The potential draw-backs of this option are that you must have sufficient equity in your home and that you must pay interest on the entire loan amount even if you don’t need the money to pay for your remodeling project or addition immediately. If you choose this option, you could save money by shopping for the best interest rate and lowest closing costs.


If you found this tip helpful, you might also want to read this:
Other Ways to Pay for Your Remodel
Comparison of How to Pay for a Remodel
Home Renovation Costs Can be Rolled into Mortgage
One Room Addition or Remodeling Estimates Calculators