Planning Your Next Home Improvement Project

HELOC | 2 min read | Updated: Aug 2023

Getting ready for a home improvement project can be overwhelming, leaving many homeowners wondering where to even begin. Whether your next project is a quick DIY or a complicated remodel, we have a few steps you can take to get prepared.

Start with a Brainstorm

Maybe you already know what improvements you want to make, but if you have multiple projects on your list, starting with a quick brainstorm can organize your thoughts and make sure everyone involved is on the same page. Consider your wants versus needs — what improvements make the most sense to tackle now and which could be saved for a later date. Take the time to consider the full scope of your project. This process can help you hone in on your main focus and eliminate other distractions.

Do your Research

Doing a little digging into what your project will involve early on can save you time and money in the long run. Review various sites and consult local experts to learn more about all aspects before diving in. If you're not planning on doing the work yourself, request multiple estimates from local professionals. Review their ratings and customer testimonials, as well as their availability and timeline for completing the project.

Form a Budget

You probably already have a rough dollar amount in mind that you think your project will cost, but there may be some expenses that you haven't considered. When forming your budget, think about the cost of materials, design, permits, labor, and clean-up — in addition to adding some cushion for unexpected expenses.

As you finalize your budget, you may also want to consider how this improvement could increase the value of your home. It may be worth spending more in some areas while remaining frugal in others to get the most return on investment for your project. For example, HomeAdvisor.com suggests you should spend between 5-15% of your home’s value when remodeling your kitchen. Sticking to this range will keep you from spending more than the project could potentially add to your home’s worth.¹

Finance Your Project

There are a variety of options for financing your home improvement project. Consider all of your options and which makes the most sense for you. Some popular options include home equity lines of credit*, credit cards, and personal loans. Learn more about popular home improvement financing options in our Fall Home Improvements blog post.

https://www.homeadvisor.com/cost/kitchens/#cost

*Important information.

Home Equity Line of Credit (HELOC) lowest rate is Prime (8.50% Annual Percentage Rate (APR) as of 7/27/23). The lowest rate includes no closing costs for equity lines under $500,000.00 that remain open for at least 36 months. If you close your line of credit within 36 months of account opening, the bank origination fee waived at account opening ($350.00 as of 7/27/23) may be assessed. Annual fee is $75.00 and is waived the first year. The APR may vary based on The Wall Street Journal “Prime Rate” (Prime) as published on the first day of the month. Minimum APR is 3.75% and maximum APR is 25.00% OH and 18% IN. Rate and terms may change at any time and may vary by property type, loan amount, credit history, and loan-to-value ratio. Property insurance required and flood insurance may be required. Consult your tax advisor regarding the tax deductibility of interest. Important Consideration when managing Interest-Only Payments: the interest rate on a home equity line of credit is variable; therefore, your monthly interest-only payment may change with market rates. Your principal balance is only reduced when you make voluntary principal payments during the 15-year draw period of your home equity line of credit. At maturity, any remaining account balance outstanding will be due in a single balloon payment. At that time, the bank may, but is not obligated to, refinance the line of credit. Subject to credit and property approval.

Loan details are as of July 2023 and may be subject to change.