6 popular spring renovation projects and how to finance them

Spring has sprung, and you're hoping to spruce up your home. If you want to go beyond deep cleaning and touch-ups this season, you might need some renovation ideas to get you started. Before you dive into changing everything, it helps to know which projects will give you more bang for your buck — and have some plans for how to pay for them.

Popular spring home renovation ideas — and their costs

Maybe you have your eye on a new kitchen or want to make your outdoor space more inviting. Some of the most popular home renovations may be more in reach than you thought and can really pay off if you later decide to sell your house.

Kitchen renovation

A kitchen remodel can cost anywhere from $26,000 to over $150,000, according to Remodeling magazine's 2023 online report. It depends on the size and type of renovation, but surprisingly, more isn't always better with a kitchen redo.

A midrange, minor remodeling project is likely to recoup more than 85% of the cost while an upscale, major remodel typically recoups around 31% of the cost. The more involved your kitchen project is, the longer it will take. You may be able to complete a simple remodel in just a few weeks, but you should expect a major overhaul to take up to 12 weeks.

Bathroom renovation

Like a kitchen renovation, a bathroom remodel can be anything from a light update, such as swapping out fixtures, to a major overhaul, with prices ranging from just under $25,000 to over $75,000.

Installing a new bathroom may cost between $57,000 and upward of $100,000, according to Remodeling. A simple reno can take less than a week while a major project may need a month or more.

Roof replacement

A roof replacement may not be the flashiest of home renovations, but it's the one that can put your mind — and those of potential buyers — at ease. Replacing a tired asphalt shingle roof may cost around $30,000, but it will add nearly $18,000 to the price of your home, according to Remodeling.

This project can happen quickly. Depending on the size of your roof and the roofing company's availability, it may be completed in just a few days or a week.

Adding or updating a deck

As the weather warms up, spending time outdoors looks more and more appealing. Adding a deck typically costs between $17,000 and $23,000, depending on whether you go for wood or composite, which is slightly more expensive.

It's another project that pays off in the end, according to Remodeling, with an average return on investment between 39% and 50%. How long it takes to add or improve a deck depends on the scope of the project, but you can generally expect to be relaxing in your yard within eight weeks if not sooner.

Hardwood floors

If you're getting tired of wall-to-wall carpet or at least tired of vacuuming it, hardwood floors may be a welcome reprieve. Architectural Digest says the average cost for new flooring starts at $3,000 for 500 square feet and goes up from there.

Flooring type also impacts the final price. You can expect to pay less for engineered or pre-finished hardwood compared to solid hardwood or a parquet floor.

Windows

New windows can make your home more comfortable regardless of the season. Remodeling estimates that the average cost to replace vinyl windows is around $20,000, with the project bringing in a 68.5% return on investment. Depending on the availability of contractors in your area, installing all-new windows in your home can take as long as 15 weeks.

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How to finance home renovation projects

Need help figuring out how to pay for your remodeling? You've got options, from tapping into your savings to borrowing money. Some ways to finance your projects include:

• Tap into your savings. If you've been saving money for house projects for a while, you may have enough cash set aside to cover the cost of your renovation. You can also combine your savings with another financing option.
• Cash in an investment. Maybe you invested in a stock that blew up or have a savings bond that's about to mature. You can use the proceeds from your investment to cover the cost of your home project.
• Use your credit card strategically. You may want to put some of your renovation costs on a credit card. Try to use one with a low interest rate or that lets you make interest-free payments for a period of time.
• Cash-out refinance loan. Also known as a cash-out refi, refinancing your existing mortgage for more than you owe allows you to take the difference in cash. A cash-out refinance is one way you can tap into your home’s equity — but it isn’t the only way.
• Open a HELOC. Depending on how long you've owned your home and how much of the mortgage you've paid off, you may have significant equity built up. A home equity line of credit (HELOC) lets you borrow against your home's equity to finance the cost of home updates.

HELOCs are often a smart way to go when financing home renovation projects since they let you use your home's value to improve the house. Here are some pros and cons of using a HELOC:

Pros of a HELOC

Some of the benefits include:

• Lower interest rate. Since your home is the collateral, HELOCs typically have much lower rates than personal loans or credit cards.
• Flexible borrowing. HELOCs are a type of revolving credit, meaning you can borrow when and how much you need to, rather than taking a lump sum.
• Fast funding. Depending on where you get your HELOC, you can access the funds you need in as little as two weeks.
• Interest may be tax-deductible. You can usually deduct the interest you pay on a HELOC from your income as long as you use the funds to pay for home improvements.

Cons of a HELOC

There are also some potential drawbacks to consider:

• Your home is the collateral. Just like with a primary mortgage, your home is the security tradeoff for a HELOC. If you fall very behind on payments, you could risk losing your house to the lender.
• You may not have enough equity. You need a certain amount of equity to tap into a HELOC. If you've only recently purchased your home or didn't make a large down payment, you may not have access to this option.
• Interest rates can fluctuate. The interest rate on a HELOC can change based on the market, meaning you may end up paying more over time.

Benefits of a home renovation

Why renovate your home? In addition to making you proud of the space you live in, there are a few reasons why remodeling projects are worth it:

• Improves your home's utility. No home is perfect, but a renovation project can help you get closer to your dream home. Updating your kitchen or bath can make those rooms more useful by improving storage or making them more accessible. Adding a deck or updating the windows can make your home more comfortable.
• Increases your home's value. If you ever plan on selling, keeping your home updated will pay off in the end. Buyers are attracted to and will pay top dollar for homes with recently repaired roofs or updated kitchens and baths.
• Updates your home. Renovations can give your home a renewed life, bringing it squarely into the 21st century.

Get ready to refresh your home

Whether you want to start with the kitchen, the bathroom or the roof, remodeling your home can pay off in the end. Citizens, recently named by Money.com as best for customer service on its 2024 best Home Equity Loans list, can get you the financing you need to turn your renovation dreams into reality.

Are you thinking about a HELOC? Get started with Citizens FastLine®, one of the easiest ways to get a home equity line of credit.

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