The best loan option for you will depend on your financial situation and the cost of the renovations you plan to make. If you have a one-time need for cash, Stouffer says that either refinancing or getting a second mortgage — like a home equity loan — could be a good choice.
However, if you need funds to cover recurring expenses, “[the] flexibility [of a HELOC] will outweigh the other two options,” says Stouffer.
You could also consider a personal loan, which will typically let you borrow $600 up to $100,000, depending on the lender. Unlike a cash-out refinance, home equity loan or HELOC, a personal loan is usually unsecured — meaning you don’t have to use your home as collateral and won’t risk foreclosure if you can’t make your payments. Keep in mind, though, that because this is riskier for the lender, rates on personal loans are generally higher in comparison to home loans.
Source: usatoday.com