When it comes to financing home improvements, remodeling, or major house repairs, your home equity is one of the best sources of funds. Low interest rates, flexible loan terms, and tax deductible interest, make an equity loan or an equity line of credit a practical choice for borrowing money.

If a large amount of money is needed for home improvement financing, an equity loan can offer a one-time distribution of funds, with long term fixed rate payments making the loan easier to pay off over a longer term. For many people, the monthly payment is a primary factor in the decision of how much financing to get, and the extent of your home improvement project. 

If you intend borrow a relatively small amount and pay back the principal quickly, a line of credit can cost less than an equity loan. A line of credit also provides flexibility in home improvement financing, with the convenience of using money in variable amounts, as needed for improvements. 

Also, when deciding on the amount to finance for your home improvements, be sure to itemize the estimated cost of your building project. Include items needed such as: lumber, concrete, plumbing, flooring, cabinets, paint, insulation, tile, fixtures, appliances, tools, safety equipment, labor, building plans, permits, clean-up, and a contingency amount for possible unplanned expenses.