Knowledge Center

How to Choose the Right Loan to Remodel Your Home, Make a Large Purchase or Consolidate Debt

educating-myself | Read Time: 3 minutes

By Jim Wechsler | Published: September 2020


With so much talk around home buying and refinance rates driving the housing market this summer and fall, many want to capitalize on the low rates. Homeowners are choosing to make improvements to their existing houses to accommodate remote working and schooling, or other comforts to gain more living space.

There are great options for homeowners with projects of any size, from a small kitchen facelift to finishing basements or attics to make them livable areas. Other homeowners who have equity in their homes but don’t need to renovate may choose to consolidate debt or make a large purchase.

Are you looking to renovate your home? Happy with your home but interested in a boat, RV or debt consolidation?

Here are some financing options to consider.

Home Equity Loan
Looking for predictable, fixed payments and the flexibility to use your home’s equity in a variety of ways? If you answered yes, then a home equity loan is a great option for you.

With a home equity loan, you get set payment terms and can use the funds for home projects or other needs, such as paying for a child’s college tuition.

Home Equity Line of Credit (HELOC)
If you want to use equity for a revolving credit line, like a credit card, that you can dip into when needed over a longer period, consider taking out a HELOC. With this type of variable interest credit line, you have access to funds for up to 10 years (the draw period) with as many as 20 years to pay the loan back (the repayment period) in full.

Personal Loan
A personal loan is a great option for newer homeowners who have not built up enough equity but want to expand or renovate their home, while also having the flexibility to use some or all of the funds for things like debt consolidation or a wedding. Personal loans have fixed rates and terms with low minimum loan amounts, but the rates are typically higher than a home improvement loan.

A personal loan is also a good option for renters who need cash to set up a home office or remote learning space, or to consolidate debt as they save for a home purchase.

Whatever your home renovation or improvement project may entail, financing options are readily available with flexible options for additional short and long-term uses.

About the Author – Jim Wechsler
Jim Wechsler is Senior Vice President, Chief Retail Lending Officer at WSFS Bank, responsible for Consumer Lending, Small Business, Government Guaranteed Lending, Community Reinvestment and NewLane Finance.


More Stressful Than a Wedding? Many People Say Buying a Home Is Just That

Think back to the days leading up to your wedding – the tension, the fear and then the relief when the final vows were spoken. It turns out that the homebuying process is a lot like that for many people.

Read More

First-Time Homebuyer This Summer? Here’s How to Build Your Expert Team

Rents are up, mortgage rates are down, and pandemic restrictions are easing. It’s no wonder that so many people across the region are looking to buy their first homes.

Read More

Ready to Go – Summer Homebuying Season Is Heating Up With Low Rates, Easing Restrictions

If you’re emerging from your home after the COVID-19 shutdown wanting to buy a new one, you aren’t alone.

Read More

Buying a House is Stressful – Follow These Tips to Manage the Anxiety and Secure Your Dream Home

You've been dreaming about it, thinking about it, and now the time has come to start looking for your new home.

Read More

Navigating Anxiety When Looking to Buy a Home

WSFS Bank surveyed 1,007 Delaware and Greater Philadelphia area residents in February and May earlier this year, finding that while people are confident they are prepared to buy a home and get a mortgage, they also have anxiety about the process.

Read More