Bathroom Remodel Financing: Exploring Your Options

Bathroom remodel financing offers a practical solution for homeowners looking to upgrade their space without the upfront financial burden. Your bathroom plays a bigger role in your home life than you may expect. So when it comes time for renovations, there can be a lot of stress involved — both practically and financially. But not to fear, a bathroom remodel is not only a great decision for your home’s functionality and appearance, it can also yield a significant return on investment.

Whether you are transforming a half-bath into a full bathroom or just refreshing some dated appliances, a bathroom remodel project can truly pay off. 

So you’ve researched bathroom remodels and have chosen a remodeler that best fits your needs — what’s next?

A bathroom remodel is an investment that can give your home an entirely new look, while also extending its longevity. The cost of the project can vary significantly depending on what you want to accomplish. In fact, bathroom remodeling costs range from $1,500 to $15,000. It will depend on the scope of the project and materials chosen, among other factors. Below, find a roundup of costs to anticipate, and how you can finance your bathroom remodel project to relieve some of that financial stress.

Down Payments 

Bathroom remodeling projects can vary depending on the extent of the project.  For instance, many homeowners want a new shower enclosure, appliances, fixtures, tiles, vanities, and lighting! We know it can be overwhelming: that’s why it’s important to discuss your options and your budget ahead of time with a contractor, since the cost in both materials and labor can add up quickly.  

Depending on the scope of the work being done and how much of it is custom — like a vanity or shower enclosure made to fit the space, for example — a contractor may request a down payment. Typically, bathroom remodel down payments start at about 30% of the final quote.  

There are some cases where a bathroom remodeler will offer a discount for paying in cash. But use caution! When a contractor requests a large cash sum upfront, it can be a scam and put homeowners at risk for losing the money with no protection. 

Financing Your Bathroom Remodel

The best way to secure the fairest price for your bathroom remodeling project is to compare multiple contractor quotes. That’s why Modernize encourages homeowners to get multiple estimates before making a final decision.  

When it comes to bathroom remodeling, financing is also an option. There are a number of personal loan lenders that offer competitive rates for bathroom remodeling projects. Additionally, your contractor might have a preferred manufacturer that they work with to provide you with a payment plan. Just be sure to stay mindful of the interest rates both both of these options.

If you want to pay for your bathroom remodel through a payment plan, your contractor might offer their own so you don’t have to go through a bank. If you do end up going through a bank, make sure to learn about all of the financial incentives available to you both directly and indirectly in the form of loans or tax credits. For instance, making the upgrade to energy-efficient bathroom appliances — like your faucets or ventilator fans — can end up coming with financial rebates and incentives.

Each homeowner will have a payment plan that looks a little bit different, depending on their budget, and the scope and cost of the project. We always recommend using a cost calculator to project the remodeling costs before figuring out which payment plan works best for you.

Bathroom Remodel Cost Calculator

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Understanding Your Equity Options for Bathroom Remodel Financing

Home Equity Line of Credit (HELOC) 

A home equity line of credit, otherwise known as a HELOC, allows homeowners to borrow money against their home’s equity. HELOCs are generally flexible but limited by a home’s value, and they also carry the risk of foreclosure. 

A common reason homeowners take out a HELOC is to finance home improvement projects, including bathroom remodels.  

Home Equity Loan 

If a HELOC doesn’t seem like the right fit, the other option is a home equity loan. This lets a homeowner borrow money against the value of a home over the amount of any or all mortgages levied against the property. It is like a second mortgage, positioning the home itself as the security for the loan. 

Whatever options you decide on, financing a bathroom remodeling project is a big step. For that reason, it makes sense to talk the decision over with people you trust, like friends or family in addition to your contractor. Their experience with homeowners in the area and specifically as it pertains to bathroom remodeling projects will be valuable when it comes time to determine your best path forward.

Next Steps on Bathroom Remodel Financing

If you are looking for additional bathroom remodel financing options, Modernize has some helpful resources.

• Avoid hidden costs during a bathroom remodel.
• Look into contractor warranties for more savings opportunities.
• Explore both short-term and long-term bathroom savings to cut down on overall remodeling costs.
• Calculate the return on investment for your project for long-term earnings.

As always, Modernize is here to help you find the best contractor that will complete your project in coordination with your preferences and within your budget!