How Can I Finance My Bathroom Remodel?

Bathrooms are one of the most expensive rooms to rebuild in your house because they usually entail removing the entire space and starting from scratch. Bathroom remodeling projects may get very pricey, especially if you want to use high-end materials. If you have a limited budget or no money on hand, bathroom remodel financing options might be right up your alley.

Different Financing Options

Here are the most popular bathroom remodeling financing alternatives:

  • Home equity line of credit
  • Home equity loans
  • Personal loans
  • Credit cards
  • Mortgage refinancing loans

Home Equity Loans and HELOCs (Home Equity Lines of Credit)

Home equity loans and HELOCs are frequently confused with one another, but there are several crucial distinctions between them.

Home Equity Loans

A bathroom makeover, as well as other home improvements, may be financed with a home equity loan. When you borrow money using a home equity loan, you have a set period of time to pay it back. The interest rate is determined by your current credit score and the amount you borrow. Bathroom remodel loans like this are quite popular these days.


A Home Equity Line of Credit (HELOC) is similar to a line of credit since it’s an open-ended secured loan that allows you to borrow between a minimum and maximum amount at any time during the term of your agreement. Because there isn’t a set interest rate, interest rates are generally lower for this sort of financing choice. Banks calculate daily rates based on borrowing power and adjust them every 24 hours.

Personal Loans

Personal loans are a type of unsecured loan that can be used to finance any sort of project, including major renovations. Personal loans, like home equity loans, are available if you make monthly payments over time; however, they’re usually utilized to consolidate debt rather than renovate bathrooms. Unsecured personal loans have no security and offer interest rates that are frequently much higher than HELOCs and home equity cash advances.

Credit Cards

You may finance a bathroom makeover using a credit card, but we don’t suggest it very often. This is essentially another type of unsecured loan. Credit cards have hefty interest rates, and you’re only permitted to borrow up to what your credit limit allows. It’s not ideal since the interest you’d pay if you don’t make your monthly payments is significant. If you miss a payment, your credit history can suffer significantly, which might prevent you from obtaining secured loans in the future for various reasons.

Setting up auto-payments is one approach to finance a bathroom remodel with a credit card. The funds for your monthly payments will be taken off your credit card at the end of each billing cycle and used to pay down the debt.

Mortgage Refinancing Loans

Refinancing is a popular option for people who have equity in their homes and want to finance their renovation. You may end up with lower payments depending on interest rates. This choice can significantly modify your monthly mortgage payment, so be sure to ask your financial advisor for more information and alternatives.