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Paying for home improvements with equity

Cash-out refinance vs. home equity loan vs. HELOC for remodels and repairs.

Published 4 min read

Key takeaways

  • You can use a cash-out refinance, a home equity loan or a HELOC.
  • Equity works well for remodels and major repairs.
  • The interest may be tax-deductible when the money improves your home.
  • Get contractor bids first, and borrow with a cushion.

Next step: See how much cash you could take out

Paying for home improvements with equity

Three ways to borrow

Cash-out refinanceOne loanOne new payment
Home equity loanFixedFixed amount and rate
HELOCVariableDraw as you go

You can use a cash-out refinance, a home equity loan or a HELOC. CapCenter offers fixed-rate home equity loans and cash-out refinances; we don’t offer HELOCs.

Good fits for equity

  • Kitchen & bath remodels
  • Roof, HVAC & major repairs
  • Additions & finished basements

Equity works well for remodels and major repairs.

The interest may be tax-deductible.

When the money buys, builds or substantially improves your home. Ask your tax advisor.

The interest may be tax-deductible when the money improves your home.

Get bids before you borrow.

Borrow what the project needs, plus a cushion for surprises.

Get contractor bids first, and borrow with a cushion.

ZERO Closing Costs

CapCenter cash-out refinances and home equity loans come with ZERO Closing Costs (restrictions apply; see Offer details).

Frequently asked questions

Is a HELOC better?

A HELOC lets you draw as you go, but the rate is usually variable. A home equity loan gives you a fixed rate and payment.

Is the interest deductible?

It may be when the money buys, builds or substantially improves your home. Ask your tax advisor.

Do I need an appraisal?

For a CapCenter home equity loan, usually not; we typically use an automated valuation. A cash-out refinance may need one. When an appraisal is required, it's covered under ZERO Closing Costs (restrictions apply).

For general information only. Program rules and limits vary. Not a commitment to lend. NMLS ID #67717.

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