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There’s no such thing as a free lunch – or free new kitchen floors or window panes. Many are attracted to the idea of home improvement. But having the money for it is not always straightforward – and not getting the proper funding you need for your projects can lead to compromises in quality that you may regret at a later date.

If you do not already have loads of money stashed in the bank, there are two common home improvement financing options to consider: mortgage refinancing and home equity loans.
For mortgage refinancing: historically low interest rates mean that it is easy to refinance your mortgage to pay for home improvement.

You can refinance your mortgage while borrowing money against the equity attached to your home. Some banks go as far as to offer loans that allow you to borrow more money up-front, as they add the costs of the improvements you intend to make, to your equity. With just one home loan and one monthly payment, it is a good deal.

Home equity loans are also known as second mortgages. These arrangements allow homeowners to borrow money by leveraging the equity in their homes.
Home improvement financing via a contractor is universally discouraged: these loans are often made by sub-prime lenders and there may be hidden fees involved.

All this, while you are left in a poor bargaining position with your contractor with regard to getting a quote for your home improvement project, borrow from reputable lending sources.