HELOC vs. Refinance — Which Is Better for Renovations?

The Big Question: HELOC or Refinance?

When you want to borrow against your home, these are the two main tools. Both can work beautifully — but they fit different goals.

Here’s the simple breakdown 👇

Feature	HELOC	Refinance
Access to funds	Draw money as needed	Get one lump sum
Interest rate	Usually variable	Fixed or variable
Payments	Often interest-only	Principal + interest
Best for	Ongoing or smaller projects	Full home remodels
Fees	Lower	Slightly higher

HELOC: Flexible and Fast

A HELOC works like a credit line on your house.✅ Pay interest only on what you use.✅ Perfect if you’ll renovate in stages.⚠️ Rates are variable, so payments can rise.

Refinance: Simple and Predictable

A refinance gives you one new mortgage and one predictable payment.✅ Ideal if you’re doing one big project and want a fixed rate.✅ Often lower interest rate than a HELOC.⚠️ Closing costs are higher and your amortization resets.

Quick Tip

If you’re only doing light renovations — say $40–60K — a HELOC often makes sense.If you’re doing a full-scale remodel or addition, a refinance is usually cheaper long-term.

Want to know for sure? Let’s run the numbers together and find what fits your budget and goals best.