Whether you're replacing an aging roof, updating your kitchen, upgrading your HVAC system, or finally tackling that backyard project you've been putting off, home improvements can add comfort, value, and peace of mind to your home.
One of the biggest questions homeowners face is how to pay for those projects. We sat down with Ian Goodrich, Personal Banker at Arbor's Gull Road branch, to discuss the options members most often consider when it comes to financing home improvements.
A. It really varies. Some projects are planned upgrades, like kitchen remodels, new flooring, or landscaping. Others happen unexpectedly, such as replacing a furnace, water heater, or roof. The size and urgency of the project often help determine which financing option makes the most sense.
For smaller projects, some homeowners prefer to save and pay cash. For larger expenses, especially unexpected repairs, financing can help get the work done without draining emergency savings.
A. Credit cards can be a good fit for smaller projects or repairs when you have a plan to pay the balance down relatively quickly.
For projects you may carry over a longer period, many members prefer our low-rate Advantage Visa® card. If you expect to pay it off sooner, our Rewards Visa® can help you earn cash back on purchases while completing the project.
A. That's where an unsecured loan can be worth considering. Many homeowners use unsecured loans for projects with a defined budget and timeline, such as replacing windows, updating appliances, or completing a bathroom remodel.
The benefit is predictable monthly payments and a set repayment schedule, making it easier to budget for the project.
A. For larger investments like roof replacements, kitchen remodels, additions, or extensive home upgrades, many homeowners explore home equity financing.
At Arbor, we offer both a Home Equity Line of Credit (HELOC) and a Home Equity Loan.
A HELOC works well when project costs may change over time. You can access funds as needed throughout the project and only pay interest on the amount you use.
A Home Equity Loan is often preferred when you know the project's total cost upfront. You'll receive the funds in a lump sum, with a fixed rate and predictable monthly payments.
A. Not always. Many homeowners want to preserve their emergency savings for unexpected expenses, while others choose to combine savings with financing. The best approach depends on your overall financial situation and goals.
A. Start the conversation early. Even if you're only gathering estimates, understanding your options ahead of time can help you plan confidently and avoid last-minute stress. The earlier you explore your options, the more prepared you'll be when it's time to begin.
Whether you're planning a renovation, preparing for a major repair, or tackling projects you've been dreaming about for years, Arbor can help you understand your financing options and choose what works best for your budget.