How to Pay for Home Renovations

You've decided to renovate your home -- but how to finance it?

Banks may be more cautious now that "subprime mortgage" has become a household term, but they are still the primary resource for home renovation financing. You'll probably need very good credit to get your loan approved, however.

Many homeowners finance renovations using the equity they have stored up in their homes. The most common options are a cash-out refinancing and a home equity line of credit (HELOC).

The Cash-Out Refinance ...