It really depends on the circumstances. Interest rates are sooooo low right now that you can make a little money by taking out a loan and keeping your cash invested. When rates go up though it will be a different story.

I would stay away from company financing.

In your case, for a $65k project with rates where they are, I would take out an $80k loan (to cover overages) and save, save, save so that I had the $80k in the bank by the time I paid back the loan. Yes, I would in effect be doubling down by paying off the loan while also saving but that's the way I work ...

Anonymous wrote:If <$20k, we’ll pay credit cards if possible to take advantage of sign up bonuses

This.

Anonymous wrote:

Anonymous wrote:Most people I talk to do a HELOC or cash out refi. And these are UMC people.

And that's the reason I'll never get a fancy remodel. DH refuses to borrow the money, yet he plows all our excess cash into retirement. He says I'll thank him one day and he's right but in the meantime I have old ugly kitchen and baths while everyone around me is renovating away. Sigh.

This is the exact same thing I am going through with my DH. Ugh!

Think about how glad you will be to retire a bit earlier than your friends who will have to work longer/more to pay off debt. This happens just at the point when you can’t take your health and energy for granted in your 50s and 60s and are also hit with tuition bills. And menopause. Believe me, your husband is right.

Anonymous wrote:Most people I talk to do a HELOC or cash out refi. And these are UMC people.

And that's the reason I'll never get a fancy remodel. DH refuses to borrow the money, yet he plows all our excess cash into retirement. He says I'll thank him one day and he's right but in the meantime I have old ugly kitchen and baths while everyone around me is renovating away. Sigh.

Your DH and mine must listen to the same podcasts.

-written from my colonial style 1980s kitchen

Cash. Spent $100k on basement last year. Would never take a loan.

Anonymous wrote:

Anonymous wrote:We save and pay cash.

Same here. We wouldn’t feel comfortable taking loans for something that is a nice to have, not need to have.

Same. I might think differently of it was $100k+

Anonymous wrote:Most people I talk to do a HELOC or cash out refi. And these are UMC people.

And that's the reason I'll never get a fancy remodel. DH refuses to borrow the money, yet he plows all our excess cash into retirement. He says I'll thank him one day and he's right but in the meantime I have old ugly kitchen and baths while everyone around me is renovating away. Sigh.

Nothing better than having lots of money when you're old and can't do anything fun because your knees are shot and you go to sleep at 8PM. I'm sure you'll be thanking lots of people.

HELOC by far the best option. For small projects, cash is fine, but for long-life updates, it makes sense to borrow.

PP here - our HHI is ~ $220K, but we put all our money into our kids’ educations and then our home. We happily live in Prince George’s County where things aren’t so expensive.

We’ve always saved and paid cash. Over 30 years of owning this house (mortgage is paid off now), we’ve put in a 2-story $110K addition, a smaller $28K addition, and a $125K kitchen/master bed/master bath addition. All cash. We’ve also saved money by DYI where we can (e.g., DH built our large deck, fire pit, various furniture, etc.).

Anonymous wrote:If <$20k, we’ll pay credit cards if possible to take advantage of sign up bonuses

worst way ever --interest rate to pay that back can be as high as 21%!

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It all comes down to interest rate and how quickly you want it done.

You can save - pay with cash. Cheapest option
You can take out a Secured loan (either against your savings or your 401k) - Usually about 3% interest
You can take out a HELOC (usually 1% above your current mortgage rate).
You can take out financing or a personal loan (usually about 8%+ interest).

Companies have been offering 0% interest loans for 3 years.

What companies??!

Window Nation and some other companies around. Don't remember where.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most people I talk to do a HELOC or cash out refi. And these are UMC people.

And that's the reason I'll never get a fancy remodel. DH refuses to borrow the money, yet he plows all our excess cash into retirement. He says I'll thank him one day and he's right but in the meantime I have old ugly kitchen and baths while everyone around me is renovating away. Sigh.

He thinks the money for a kitchen will prevent you from retiring? I couldn't live with someone with that financial mindset.

I couldn’t live with someone who judges a person’s character on one thing. But no you’re right I should leave my husband and my children’s father over a remodeled kitchen.

I am not the one on the internet whining and moaning about my spouse.

Save and cash only or we don't need it.

Anonymous wrote:

Anonymous wrote:Most people I talk to do a HELOC or cash out refi. And these are UMC people.

And that's the reason I'll never get a fancy remodel. DH refuses to borrow the money, yet he plows all our excess cash into retirement. He says I'll thank him one day and he's right but in the meantime I have old ugly kitchen and baths while everyone around me is renovating away. Sigh.

He thinks the money for a kitchen will prevent you from retiring? I couldn't live with someone with that financial mindset.

I couldn’t live with someone who judges a person’s character on one thing. But no you’re right I should leave my husband and my children’s father over a remodeled kitchen.