Renovating your home is more than simply improving your quality of life; it’s also about increasing your home’s net worth and its resale value. There’s just one problem: improvements can cost a lot of money, and you may have to consider improvement loans.

Yes, you could save up instead of borrowing money for home renovations, but the truth is that this isn’t always possible. If you’re considering home improvement loans 2021, here’s all you need to know about them.

A Simple Guide to Home Improvement Loans

A survey revealed that most homeowners tend to use their credit cards for home renovations, and only 11% of the respondents planned to take home equity loans.1 This is disturbing, especially because home improvement loans are typically cheaper than credit card debt.

What Is Home Improvement Financing?

A home improvement loan is any type of financing you take to undertake your home renovation projects. There are several different types of loans, including personal loans, home equity lines of credit, and home equity loans.

Financing Options Available

Personal loans for Renovations

These are by far the most common types of home improvement loans and are commonly used for renovations and debt consolidation. Personal loans are mostly preferred by borrowers because they are available from both online and traditional vendors, so you can shop around for a lender that suits your needs.

These types of loans are, however, unsecured debts, which is why most lenders are hesitant to give them out. If you’re successful, though, you can get your money in as little as 2 days.

Home Equity Loans

A home equity loan is a type of secured debt, which means that if you don’t pay, your lenders can rightfully take your home as collateral to repay your debt. These types are easier to process because leaders find them less risky, but you need to take an amount you’ll be comfortable paying to protect your home.

Home equity loans are almost like taking a second mortgage.

Home Equity Line of Credit

HELOCs are like a hybrid between credit cards and home equity loans. They are secured, and you’re given access to limited funds depending on your needs. This ensures that you don’t borrow money that you don’t need.

These types of loans typically have low interest rates.

Home Improvement Guide for Public Employees

Which type of home improvement loan is best for you? You need to consider factors such as;

  • Whether you have home equity
  • Interest rates and closing costs
  • Your credit score
  • How fast you need the money.

If you need your money in a lump sum, personal loans and home equity loans are the best options, but if you need small amounts of money over time, you should go for a HELOC.

Your property is a huge asset. Talk to one of our expert advisors about the  CalPATH Home Loan Program and how you can use your mortgage to increase your savings.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore

Branch Manager”


Links of external links

  1. Survey: Only 11% of U.S. homeowners will use loans to cover home improvement projects