As easy as it may look on HGTV, home improvement projects are a big task. Whether you are ready to sell your house, or you want that open concept and backsplash you’ve been dreaming about, one of the most important considerations you will have to think about when planning home improvements is how to pay for them.
While saving money for a specific project and spending it on that project is the best way to pay for home improvements, that’s not always possible. So let’s take a look at three potential options.
Should You Refinance Your Mortgage?
You’ve assessed the project at hand, and now you need a bit more money than you may have on hand. A cash-out refinance may be the right option. Applying for a cash-out refinance replaces your existing mortgage with a new, larger loan and a new interest rate. You can spend the extra funds from a cash-out refinance to make home upgrades because you get to keep the difference between your previous mortgage and the new loan.
If you’re considering refinancing, examine the advantages and risks carefully. An appraisal, origination fees, taxes, and other closing-related costs must be paid. And, unless you refinance for a shorter term, you’ll be prolonging the life of your loan, which means it could take you longer to repay.
Generally speaking, refinancing is only a good option if you can get a lower interest rate to reduce your monthly payment, and it is worth chatting with your local financial experts.
Our Team Can Help

- Our mortgage experts know your community because they live & work there
- They will be with you through the entire process
- They’re able to answer questions and give helpful tips throughout the process
Should You Use A Credit Card?
If you’re working on a small project around the house, such as replacing a bathroom vanity or putting in a new closet system, one of the easiest home improvement financing options may be to use a credit card.
What is the benefit? Some credit cards offer cash back rewards, or no interest for the first year when you first open the card. You may be able to pay for small home upgrades without paying interest. Many cards also provide good returns, so the more you spend on renovations, the more cashback you may be able to collect.
Unlimited 2% Cash Back!

Earn 2 reward points for every $1 spent with a Select Rewards card
Redeem reward points for 2% cash back, travel, merchandise & more
Enjoy a competitive low rate on your rewards card
Would Refinancing Your Auto Loan Help?
It might be difficult to decide if it’s right to refinance an auto loan, but if you approach it correctly and ask the appropriate questions, you’ll be able to make the right decision.
When you refinance a vehicle, you may be able to save money, get a cheaper payment, or both to help put funds towards other projects, such as your home improvement list. If you’re behind on your current auto loan, you bought the vehicle recently, or your existing loan involves prepayment penalties, you should generally avoid refinancing your car loan.
However, refinancing your auto loan could be just what you need to have your home upgrades done on a budget. Make sure you’re paying attention to important elements such as:
- Penalties for early payment
- Interest rates
- Your credit score
- Your current loan’s remaining term
Refinance With Honor!

Enjoy competitive low rates with an Honor auto loan
Take advantage of flexible terms up to 96 months
Apply 24/7 with our fast online application
The Bottom Line
Home improvements do not have to be expensive to look like HGTV, but everyone has a budget that they must adhere to. Whether you’re attempting to update and remodel a property to get it ready for the market or to make it a more pleasant place for you to live, there are plenty of methods to save money so you can make better use of your budget.
Home Equity Line of Credit
A home equity loan or home equity line of credit (HELOC) is an excellent way to finance your projects and may be just the fit for you. Make your home work for you by checking out the options to use your home’s equity as collateral.
More To Explore

Honor Credit Union’s mission is ‘bigger than banking’
See how Honor Credit Union gave $895,000 in 2024 to support Michigan nonprofits, schools, events, and families. It’s truly banking

$250 bonus just one perk of joining Honor Credit Union
Open a Benefits or Connect Checking account at Honor Credit Union and get a $250 bonus—plus perks like high interest

Why Your Credit Score Matters When Buying a Home- A First-Time Homebuyer’s Guide
In this guide, we’ll break down what a credit score is, how it impacts the homebuying process, how to check

What Is a Balloon Mortgage and How Does It Work?
In this article, we’ll break down how Honor’s balloon mortgage works, and why some buyers are choosing this flexible home