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Remodeling Your Home: How to Afford It

Posted on March 5, 2020

Ugly carpet that just hurts to look at. A kitchen that sends you back in time to the 70s. A backyard that is more weeds than yard. Whether you just bought a home that needs some serious work or you’re looking to update your forever home, home remodels can be great for making a home feel like new. From cosmetic updates to fixing some serious problems though, home remodels can get very expensive very quickly.

Between supplies, labor, and time, remodelling your home can quickly cost thousands of dollars, and if you aren’t properly prepared or funded, could leave you stuck with a half finished project. To make sure you can afford your next home project, we’ve got some ideas on making sure you can afford and finish it.

Plan and Budget


woman sitting on the floor surrounded with suppliesBefore you pull out your sledgehammer and start tearing out walls, you need to have a clear and concise plan on what you want. Not only will this make sure you go into your remodel knowing what you want, it will help prevent unnecessary expenses and multiple trips to the hardware store.

Once you have a firm plan on what you want, start budgeting it out. First, figure out costs for supplies alone, as if you were planning on doing the project yourself (even if you don’t plan to.) This will educate you a lot on the type of work that needs to happen and how much the base cost for the work will be. You can even shop around for different supplies to get a good range on what this cost will be.

Then, get several estimates and quotes for the project. Shop around and talk with several different contractors to understand how much it would cost for them to do it, how long it would take, and how much of the estimate is supplies versus labor. You can compare these quotes with how much you know supplies cost to figure out who might be overcharging or giving you a good deal.

Reuse, Reduce, Recycle


two pots made out of recycled woodsOnce you know what you want to do in your remodel, it’s time to find ways to cut costs and save money on the project. Even if you want to have a completely different look, you don’t have to start from scratch when it comes to your materials. There may be parts of your current home that you can reuse to save money and still meet your vision.

For example, let’s say you want to completely change the style of your current kitchen, including your color scheme. Rather than tearing out your current blonde wood cupboards, you can paint or stain them to match what you are going for, along with adding on some finishing touches. You can make those cupboards look brand new, match your aesthetic, and save yourself some money.

You should also search through local online trading places like Facebook Marketplace or Craigslist for people giving away or selling for cheap items you could utilize. Want to create a nice rock area in the backyard? There might be somebody looking to get rid of the rocks from their backyard that would be perfect for you. Think creatively of what you find and how you could use it for your projects. Habitat for Humanity ReStores are another great place to find materials for your remodel, with locations in Boise and across the state! You keep your business local and support a great cause!

Save Up to Cover the Expenses


The best way to afford a remodel, especially a smaller one, is to grow your savings to cover the costs. Taking out a loan will end up costing you extra, so if you want to keep the remodel as cheap as possible, save up for it!

The downside to this is that it takes time to save for something as expensive as a home remodel project. Rather than being able to jump right into it while you feel passionate about it, you have to wait and work on saving money.

To help you reach your savings goal faster, Pioneer has a Special Purpose Savings account. It has a higher interest rate and is a great place to keep the money for your remodel separate from the rest of your finances. To open a Special Purpose Savings account, visit a branch or open it online.

Open a Special Purpose Savings account!

Taking out a Small Loan


With larger projects that either require immediate attention or you just don’t want to wait, you can take out a loan to cover the costs. This is great for a singular project that you plan on completing quickly and want to start paying off immediately. If you have some extra income every month that you could put towards this debt and you have a great credit score, this might be the way for you.

Pioneer has a Signature Loan that doesn’t require any down payment or collateral, with competitive interest rates. To apply for a Signature Loan, stop by a branch or apply online!

Use a Home Equity Line of Credit


construction workers hammering on a roofIf you’ve been in your home for a bit and have a good share of equity in it, a Home Equity Line of Credit (HELOC) could be just the funding option you need. It’s a flexible means to borrow money that you then pay back at a later date. If you are doing a lot of work on the house like remodelling the whole home or building an addition onto it, a HELOC is a great way to do it.

You can use your HELOC for any expense you want such as paying your contractors, buying supplies, or even paying for pizza after a hard day of remodelling. It’s extremely flexible on how you use it, and you can use it for up to 15 years. If you’ve got a lot of work ahead of you, it’s a great option to pay for any expenses you have. To learn more about Pioneer’s HELOC program, visit our webpage about it or contact our Mortgage team.

Open a HELOC Today!

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