NEW YORK CITY, NY / ACCESS Newswire / July 1, 2025 / If you're ready to update your kitchen, add a new bathroom or upgrade your whole house, you may be thinking about how to pay for it.

Home remodels can cost thousands of dollars, and most people don't have that kind of cash sitting around. The good news is that there are loans in Lubbock that could help you cover the costs of remodeling your home.

Here are four types of loans to consider when remodeling your home in Lubbock.

1. Personal loan

A personal loan is a lump sum of money you borrow from a bank, credit union or lender. You pay back the loan in fixed monthly installments over a set amount of time. You can use a personal loan for many purposes, including home repairs or renovations.

It's important to check the interest rate offered for the loan, because it is the cost of borrowing money from a lender. Depending on how long you take to pay back the loan, securing a lower interest rate typically translates into paying less overall, while a higher rate means you'll pay more every month and over the life of the loan.

Before you apply, it's helpful to check what type of borrower qualifications the lender typically considers, including your credit score, credit history and income. Requirements may vary between lenders, but knowing this information ahead of time can help you find and apply for a loan you might be more likely to get approved for.

Each lender is different, so take time to shop around. Compare details like the total monthly payments, including the principal (the original amount borrowed) and interest. Also, consider the repayment period being offered to you, how long it will take you to pay off the loan and the total cost of the loan, including any extra fees.

2. Home equity loan or home equity line of credit (HELOC)

If a lender is aware that you have equity in your home, you might be able to get a home equity loan or a HELOC. Home equity is the amount of your home's value that you own. It's the difference between what your home is worth (the current market value) and how much you still owe on your mortgage.

A home equity loan provides the borrower with a lump sum of money from the lender, typically with a fixed interest rate. A HELOC, on the other hand, is a revolving line of credit that works a lot like a credit card: you borrow money up to the assigned credit limit during a defined period of time called the draw period. The borrower can then repay it and borrow again and only pays interest on the amount that is actually borrowed. After the draw period the borrower can then make monthly payments to pay off the remaining balance. A HELOC typically has a variable interest rate, which means the cost of borrowing money can go up or down over time. An unpredictable interest rate makes it harder to know what you owe every month. Even if the interest rates on a home equity loan or HELOC seem low, you should still think about other costs, like appraisal fees, which can add to the expense associated with this kind of loan.

Both a home equity loan and a HELOC are secured forms of borrowing, which means they are backed by something of value that you own, called collateral. In the case of a home equity loan or HELOC, the collateral would be your home. If you don't repay the loan, the lender has the right to take possession of the collateral to recover the amount owed, and you could lose your home.

3. Credit card

While not always the best option for big projects due to their typically higher interest rates, credit cards could be helpful with funding smaller home updates like painting or buying new appliances. Some cards come with either an introductory or promotional 0% annual percentage rate (APR) for new purchases and/or balance transfers, meaning you won't pay interest on the money you borrow during the offer's specific period, which can save you money, but only if you pay off the balance before that period ends. Keep in mind that these offers frequently have a transaction fee which is a percentage of the amount you borrow.

4. Cash-out refinance

With a cash-out refinance, you replace your current mortgage with a new, larger one. The difference between the new loan amount and the balance (what you owe) on the old mortgage is given to you in cash, which you could then use for your remodel. A cash-out refinance often works best if you've built up a good amount of equity in your home and you're able to get an interest rate that suits your budget.

Remodeling is a commitment

Remodeling your home in Lubbock can be exciting, but it's likely to be a big investment. No matter how you choose to pay, the key is to choose a method that works best for your renovation budget, your long-term finances and helps you make the most of your project.

Do your research, talk to lenders, compare different loans and get the funding you need to break ground on your remodel.

SPONSORED CONTENT

CONTACT:
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com

SOURCE: OneMain Financial