The Smartest Ways to Pay for a Major Home Renovation

Watchara Ritjan/ShutterstockResidential home improvement projects continue rising in the United States, even as labor and material costs increase. Homeowners with financial finesse often seek cost-effective, flexible ways to cover their home renovation projects.Exploring financial options when pursuing renovations can help you reduce expenses and maximize your investment. Of course, each payment plan has several benefits and risks you must consider. From loans to personal savings and federal programs, choosing the best method can save you thousands of dollars in interest and fees.Assessing Your Financial Situation Before You RenovateAccording to Angi’s 2024 State of Home Spending Report, baby boomers invested about $14,140 in home upgrades, while millennials spent $2,316 in essential maintenance. Trends for 2025 suggest that 22 percent of homeowners intend to paint their home, while 13 percent plan to update bathrooms with groutless showers, new fixtures, and floating vanities.