Remodeling Trends That Increase A Home’s Value

August 03, 2023

Do you have home makeover ideas but worry about having the funds to cover your wish list? When determining the projects to tackle or forego, keep in mind that some enhancements can increase your home’s value, while others may not. Some home improvements may be worth the cost, even if you don’t recoup all the money you’ve invested in them. But if you plan on moving within a few years, you’ll want to proceed with caution before taking on a project that may cost you in the long run.

Here are some facts to help guide your decisions.

By the Numbers: The Top 3 Remodeling Projects

Remodeling Magazine’s Cost vs. Value Report1 lists garages, exterior siding and kitchens as projects offering the greatest return on investment.

Here's a look at the average cost for these projects and how their return on investment (ROI) typically plays out:

Project Average Cost Cost Recouped at Resale
Garage Door Replacement $3,907 93.8%
Manufactured Stone Veneer $10,386 92.1%
Minor Kitchen Remodel/Midrange $26,214 72.2%

Other home renovation trends like decks, bathrooms and room additions offered less than a 70% ROI. If an in-ground swimming pool, outdoor kitchen, or other custom feature is on your project list, be prepared for most of your return to come from the enjoyment of the new space or feature.

5 Ways to Fund Your Home Remodel

Part of nailing down the best home improvement project for your situation is figuring out how you'll pay for it. Consider a combination of funding options to keep costs down while increasing the value of your home.

Personal Savings

When calculating the total cost of a remodeling project, many homeowners forget to factor in the cost of borrowing. So if you have the patience to save up for a mid- or large-project, it could yield a higher ROI since you won't have to pay interest or loan fees.

Personal Loan

A personal loan offers a simple way to borrow a small amount to fund lower-priced projects. This option is often preferable to using credit cards since interest rates on these loans can be lower if you meet minimum income and credit score requirements.

Grant Programs

Depending on your project plans, you may qualify for free money to cover expenses. For instance, is your home in a historic district? Do you plan on replacing outdated appliances with energy-efficient models? If so, your project could end up costing much less than you budgeted. Contact your utility company to learn what product rebates are available in your area.

Cash-out Refinance Loan

If you have enough equity in your home, consider a cash-out refinance to help with the cost of your home renovation project. A refinance allows you to use a new loan to pay off an existing one, usually at a better rate and repayment terms. It's possible for a new mortgage loan to include some of the equity in your home that you receive when the loan is disbursed to your existing mortgage lender.

Home Equity Loan

Qualified homeowners with equity in their homes can use  home equity loan or home equity line of credit (HELOC) to pay for remodeling expenses. A home equity loan is disbursed in one lump sum and repaid over a set period. A HELOC is a line of credit you can borrow against as needed. Similar to a credit card, you only repay the amount borrowed. Keep in mind this type of loan comes with higher rates because lenders consider it a higher risk.

Need a Loan to Cover Your Next Project?

Redesign your living space to meet your lifestyle and financial needs. Learn more about a Cash-out Refinance, Home Equity Loan, or Home Equity Line of Credit (HELOC) or contact us at (800) 462-8328 to speak with a loan consultant today.


All loans subject to approval. Programs subject to change.