I need to take out a loan to remodel our bathroom and install a new fence. The house is paid for so my qestion, is there any difference in a personal loan or an equity line of credit? are the rates or repayment length different?

I believe you can write off the interest on a HELOC loan...or at least you could at one time.

A personal loan is a single amount of money with fixed payments. A line of credit lets you get funds at different times but with variable rates.

Weigh the cost difference between a personal loan vs HELOC. Don’t let them talk you into a refi. HELOC has upfront fees and rates are 8-10% right now and they float with the market.

Depending on the total cost, you may look at a 0% interest credit card and just do a balance transfer every year to a new 0% interest card until it’s paid off.

not a bad idea. no way I refi, paid for is a great feeling.

A HELOC allows you to write off the interest yes. Depending on how much you need, a home equity loan might make sense but would come with more costs up front than a personal loan. However, the rate would be lower than a personal loan and term more favorable in most instances.

I'm with BP; a bathroom and fence shouldn't be more than what...$30k. I would get a couple no interest CCs and what you can each month then balance transfer at the end of the zero interest period.

I figure it should be right around there. not looking for super fancy.

The CC companies got wise to the game and many require a "transfer fee"...not saying don't go that route but be diligent in your research.

As mentioned the HELOC gives you more flexibility both long and short term at typically a lower interest rate but typically up front closing costs. Another area you need to do some due diligence on and weigh your financial situation the most. Plus pros/cons...obviously a HELOC ties your home to that money in a catastrophic event of a default.

There are no right/wrong answers here, you have to figure out what is best for your short/long term financial needs.

Just go on Nextdoor and request donations (beg) like so many do!

Seriously, hope you make it work out.

We've been wanting to do a kitchen remodel for the last 3 years but medical issues kept putting it off. We're determined to do it this summer, but the wife has cash set aside so no loan.

check into an equity secured construction loan, funds available as job progresses and probably a bank inspector to back you up.

used to be construction loans were about the cheapest you could get till they rolled over to the long term finance.

not sure how it might work with equity.

Great advise above, if you go the route of CC. Consider a no fee equity line of credit and let it sit dormant. I have one and can access $300,000 in a matter of minutes without the trouble of selling securities. Just a tool in your tool box you may never need, but great to have if you find a reason. Yes variable

What is the Interest Rate on your CC with a no fee equity line of credit when in use?

Great, now I'm getting bombarded with HELOC ads and recommendations!

I will be the contrarian. Remodeling a bathroom and a new fence are not emergencies and I can’t imagine going into debt especially with current interest rates for some stupid crap like that. Save up and do it when you can afford it.

It has ranged from 6.5% to 8.5%.

Take a loan from your 401k

A HELOC with Frost bank is in the 9-12% range. I’d pass on that. Save up and pay cash.

You might check out Texas Veterans Land Board. When we put new flooring in our house we took out a loan from them.

Bet the Fed lowers the interest rates at least twice before the election in November to help the POS in the WH's re-election efforts.
So if you decide to do a HELOC or Construction loan you might want to hold off and see how that plays out (Fed lowering the rate).

Yes that is brilliant. You can’t afford it now while you are working so rob from your retirement that you will be depending on when you no longer have a paycheck.

I really don’t agree with a lot that Dave Ramsey says and am not just preaching his kool aid. If you need a loan for a home get one. Buy something reasonable that you can afford. If you need a car loan get one but buy a modest used car. If you are not paying cash and have to get a loan so that you can have transportation do it but get something frugal. If you need a loan for some sort of business venture that is going to make you money do it.

However getting a loan to buy something you just want that isn’t absolutely essential is about as stupid as it gets. Ever notice how the banks have the nicest and largest buildings in town? It’s because of schmucks who can’t wait to have stuff and finance it instead of saving up and waiting.

I remodeled a bathroom last June. I used a large statewide company and got 0% for a year. Already paid it off. That's like free money.

Take a 401 k loan not a withdraw from your savings , you pay yourself back .

Viable option.

We have profit sharing. Not a possibility.