How to Finance a Bathroom Remodel

Remodeling a bathroom is on many people’s wish list. But bathroom and kitchen remodels can be painfully expensive. So how can you fund a bathroom remodel?

Let’s look at the cost of bathroom remodels and improvements, how installment loans can help, and other bathroom remodel financing options for your renovation.

How much does a bathroom remodel cost?

This is the most common question people ask, from “how much does it cost to remodel a small bathroom” to “how much to remodel a bathroom” and “how to finance a bathroom remodel.”

The estimated cost for bathroom remodels can vary wildly. Angie’s List estimates the average cost of a bathroom remodel is between $6,622 and $16,771. Remodeling magazine estimates the average cost of a mid-range bathroom remodel at $27,000. And Forbes suggests a full bath remodel should cost you $6,000 to $15,000, though a primary bathroom could cost you from $10,000 to $30,000.

So how much does it cost to remodel a bathroom?

Obviously, the real answer lies in what you plan to do. If you want to replace the vanity and light fixture, your costs will be dramatically lower than if you want new custom tile, a glass shower and all the trimmings. If you keep your plumbing in the same place, for example, a remodel will cost far less than if you want to move it.

Much of the cost will come down to labor. Some say it could comprise 20% or more of your costs, while others suggest it could be 40% to 60% of the cost for complex jobs like custom tile, moving plumbing, and other major labor-intensive work.

There are ways to save on costs. Doing some or all the work yourself is the most obvious way to make a dent, given the cost of labor. You can also spread the work out over time in mini-projects. Using stock options for vanities and fixtures can save you significantly, as can choosing stock flooring rather than custom tile. Vinyl, for example, will save you more than plank flooring or tile that will require skilled installation. Even if you choose tile, large stock tile will save you money over custom details or small tiles because of the difference in the labor needed.

Bathroom Remodel Financing

Just as the prices can vary widely for a bathroom remodel, so do the options for financing it. Let’s review the types of financing available for this type of project.

• Personal loan, also known as an installment loan
• HELOC, or Home Equity Line of Credit
• Home equity loan
• Cash-out refinance
• Credit card
• Government loans
• Savings/cash

For details about each loan type and the projects they may be best for, please check out our How to Refinance Your Home Renovation blog post. In this article we focus on installment loans and how they could work for a bathroom remodel.

How an installment loan works for a bathroom remodel

With a personal or installment loan, you borrow from a lender and repay the money with interest in equal payments, typically monthly. An installment/personal loan might be a good option for a bathroom remodel for a number of reasons.

• First, installment loans are available for any purpose. You’re not required to tell the lender what you plan to do with your loan or to spend the money in just one way. This gives you flexibility and simplifies tracking expenses.
• Second, installment loans are potentially simple to receive. They are widely available from many lenders, both online and in person – including Check `n Go. They are also available for a wide range of credit scores, though interest rates may be higher for borrowers with lower credit. Keep in mind that you may see these loans available both as secured and unsecured homes. See Secured vs. Unsecured Loans: What You Need to Know for more information on which is right for you.
• Third, installment loans are available for a range of amounts. It’s easy to get just the amount you need for your project. Since the amount is specific to your project, make sure you have a solid estimate of the costs before borrowing so you don’t end up with too much or too little.
• Fourth, with an installment loan the money is available relatively quickly. Some lenders will get you the money as quickly as the next business day. If you’re in a hurry, this may be valuable to you. In some cases, other types of financing can take weeks or even months.
• Lastly, consider these factors. An installment loan is easy to budget for since payment is the same every month. You know exactly how long it will take to pay off the loan. Because the payments are the same every month, an installment loan may not be a good fit if your income isn’t stable. Also remember, the lower your credit score the more you’ll pay in interest (though this is the case with most loans).

So how do you prepare for an installment loan? Make sure your credit score is as good as possible – check out our tips for improving your score. Most lenders have an online application process, but many also offer in-person lending. It’s a good idea to get pre-qualified with multiple lenders so you can compare interest rates before choosing and signing for your loan.

• You’ll need to gather paperwork for your application; this differs by lender but can include a government ID, social security number, pay stub, previous year’s tax return, etc. You’ll complete the application.
• Complete the application documents, either in-person or online, to get pre-qualified.
• Wait for responses from the lender so you can compare rates and other loan terms, like the length of time to repay the loan and whether there are any fees.
• Make a decision. From here you just sign your paperwork to finalize the loan. Then you’ll receive your funding. While how fast this happens varies from lender to lender, most personal loans provide funds quickly. If speedy funding is very important to you, be sure you ask about this when shopping for loans and getting pre-qualified.

Apply For an Installment Loan

Benefits of a bathroom remodel

If you’re thinking about how to remodel a bathroom, know that just like estimated costs and financing options, the estimated return on investment varies significantly. Some suggest the return on investment could be up to 57%. This means if you sell your house after the remodel, you could increase the selling price enough to cover $0.57 for every dollar you invested in the project. And while it doesn’t always translate to a dollar value, adding features like an en suite master bathroom to your home can make it more attractive to buyers when the time comes.

Monetary benefits aren’t the only consideration, though. The National Association of Realtors suggests 35% of bathroom remodels had a direct impact on the livability or functionality of the space. In other words, you benefit when the space works better for you. For example, adding or renovating a second full bath may make mornings dramatically easier for your family.

A bathroom remodel can also make your home more energy efficient. With more efficient lighting and faucets, you can save money on your utility costs. You can also make your bathroom more environmentally friendly with sustainable materials.

Safety considerations can also factor into the benefits of a bathroom remodel. Any mold, mildew, slippery areas or other safety needs can be taken care of as part of a remodel. You can even add safety features like non-slip flooring and shower grab bars to make your home safer, particularly for aging family members.

Lastly, a beautiful usable space has its own benefits. A clean, healthy, functional bathroom with good storage, safety features, and aesthetics you like can bring you joy and even decrease anxiety. And that kind of benefit for you and your family is priceless.

FAQs: Bathroom Remodel Financing

What credit score is needed for bathroom remodel financing?

This will depend entirely on the type of funding you choose and the lender. Be sure to pre-qualify with multiple lenders, as advised above, to get more information and see what interest rates you may qualify for. Some lenders, like Check `n Go, specialize in helping those with low credit and can help you determine what’s available to you.

What is the average ROI for a bathroom remodel?

Estimates for the return on investment of a bathroom remodel will vary based on the area you live in and your individual home. Some companies, like Home Advisor, offer online calculators based on your zip code and other details. As Today’s Homeowner says, the number will also vary “starkly” by project type. For the most accurate information, we suggest you contact a realtor in your area.

How much equity do you get from a bathroom remodel?

The amount of equity you’ll get from a bathroom remodel will vary widely based on the type of project, the extent and style of the renovations, the quality of the work, where the home is located, and additional factors. For more information, we suggest you contact a realtor in your area.

Apply For an Installment Loan