Plans to gut the kitchen or re-tile the roof? Consider the pros and cons of these three financing options: 1) Home Equity Line of Credit (HELOC). This option is like credit card with a huge limit. Watch out for problems that may arise regarding rates, interest-only payments and refinancing. 2) Mortgage Cash Out. Though the principal balance is reduced monthly, you might have to finance more than project expenses or you may not be able to obtain as much money because of loan-to-value. 3) Personal Loan. This method requires no loan-to-value and can be repaid faster but have higher rates and no tax advantage, as well as qualification restrictions linked to the higher payments.
Read the full article here: Planning a Remodel? Check Your Financing Options