Most remodels are paid for with a mix of savings and borrowing against the house. Here's a plain-language look at the options. We're a design-build firm, not lenders or financial advisors — talk to your bank or credit union about your specific situation.

Cash / savings

No interest, no application, full flexibility on selections. The tradeoff is your emergency fund — don't drain it for a kitchen. Many people pay for design and the deposit in cash and finance the build.

Home equity line of credit (HELOC)

The most common way to fund a remodel. A revolving line secured by your home — you draw what you need as the project progresses and pay interest only on the balance. Variable rate. Great fit for a phased project or when the final number may shift with change orders. Local NH banks and credit unions (Savings Bank of Walpole, CheshCounty, Mascoma, Bellwether and others) all offer them.

Home equity loan

A one-time lump sum at a fixed rate with fixed payments. Better when you know the number and want payment certainty. You pay interest on the whole amount from day one, so it's less efficient for a project that pays out over months.

Cash-out refinance

Replace your mortgage with a bigger one and take the difference in cash. Only attractive if today's rates are at or below your current mortgage rate — for most people who bought or refinanced in the low-rate years, they aren't, which makes this the wrong tool right now.

Renovation loans (FHA 203k, Fannie HomeStyle)

Roll the purchase or refinance and the renovation into one loan, based on the home's projected after-renovation value. Useful when you don't have equity yet — buying a dated house and remodeling immediately. More paperwork, draw inspections, and the contractor has to work within the program.

Contractor / third-party financing

Some remodelers offer financing through a lending partner. It's convenient and fast to approve, but read the rate and terms — introductory-rate and deferred-interest offers can get expensive if the balance isn't cleared in the promo window.

A sensible approach

• Get a real budget band first — run the budget calculator and confirm it at a consult.
• Line up a HELOC before you start; you don't pay for what you don't draw.
• Keep a 10–15% contingency outside the loan for the surprises behind the walls.
• Don't over-improve for the neighbourhood if resale matters — see what a remodel adds to your home's value.