Michelle McLellan, Senior Product Management Executive at Bank of America
Nearly 80 percent of homes in the U.S. are at least 20 years old according to the Joint Center for Housing Studies of Harvard University. And some much older than that. Aging homes means many homeowners either want to bring their homes up to date, or they need to replace well-worn parts of their homes.
They’re taking remodeling into their own hands to make their home fit their lifestyle. Whether it’s fashion or home design, we’ve all made trendy choices that make us look back and cringe. Wood paneling may have been on-trend in the 70s, but today it makes a room look dull and dated. And, if you still have a Tuscan-inspired kitchen, it’s overdue for a refresh. After all, reviving your space can help you feel more at home in a place you’ve already grown fond of. And while we see so many design ideas we’d like to try, we don’t get much information when it comes to paying for all these fun changes. For the big items, a trusty credit card isn’t necessarily a financially savvy choice. There are other ways to finance your home renovations, like a home equity line of credit (HELOC), but they can be a bit intimidating until you uncover the mystery).
Relevant research from the 2018 Houzz & Home Study: Role of Secured Financing in U.S. Home Improvement in Collaboration with Bank of America:
- Homeowners choose to finance the big projects – A typical homeowner using secured (e.g. home equity line of credit, cash-out refinance) financing spent $32,000 on 2017 renovations, three times more than a renovator paying with cash ($13,000).
- Home equity lines of credit provide flexibility – Those surveyed said they were motivated to use a HELOC by its ease of use (39%), low cost (38%), quick funds (30%) and tax deductions (29%).
