How Do People Pay For Major Home Repairs?

When you own a home, it’s inevitable that repairs are going to be necessary. The good news is that there are ways to fund these fixes. For example, if your kitchen needs an upgrade or your bathroom is in need of a remodel, you can use personal savings and home equity to fund the work. 

However, if you don’t have enough cash on hand or simply want what’s best for your long-term financial health, consider other options like personal loans or credit cards and always seek out professional help from trusted mortgage brokers and lenders when considering them!

How Do I Pay For Home Repairs While I’m Paying Off Debt?
Home repairs can be a major expense for homeowners.
Planning ahead and exploring financing options can help you pay for major repairs.
From personal loans to home equity loans and more, there are many ways to finance home repairs.
Regular maintenance and preventative measures can help you avoid unexpected repair costs.
Government programs may be available to help homeowners pay for repairs, particularly for low-income households.

Personal Savings

Personal savings are the most common source of funds for major home repairs. If you’re in good financial standing, it’s likely that you have some money tucked away that can be used to pay for these expenses.

It’s important to remember that personal savings are not just meant to be used as emergency funds. 

They can also be used for regular household costs, including renovations and improvements on your home or apartment. In fact, many people use their savings as a way to upgrade their homes! 

If you’ve been putting off buying new appliances or furniture because they’re too expensive, consider asking yourself what other things could be done with the money instead—and whether there are any upgrades that would make living more comfortable right away (like adding insulation).

If you’re planning on starting a home renovation project, it’s important to understand how the process works and what to expect along the way. Check out our guide on how home renovations work to learn more about how to make your home renovation a success.

Home Equity Line Of Credit

A home equity line of credit (HELOC) is a revolving line of credit that offers you the option to borrow against the equity in your home. 

A HELOC allows you to borrow money up to a certain limit and then pay it back over time, as opposed to having an interest-only loan, where you only pay interest on the amount borrowed. 

The key feature of this type of loan is that when it comes time for repayment, homeowners have several options:

  • Pay off their entire balance at once;
  • Choose a monthly payment plan; or
  • Set up automatic payments so they never miss another payment again!

Home Equity Line of Credit (HELOC) Table

Can be cheaper than taking out a personal loan or using a credit card for home repairs.Your home is used as collateral, so if you can’t make payments, you risk losing your home.
Can offer flexible repayment terms and lower interest rates than other types of financing.Interest rates can fluctuate over time, so payments may increase in the future.
May be a good option if you have significant equity in your home and need a large sum of money for major repairs.Qualifying for a HELOC may be difficult if your credit score is low or if you don’t have much equity in your home yet.
Interest payments may be tax deductible in some cases.You may have to pay fees to set up the HELOC or to access the funds.
Can be useful if you need ongoing access to funds for ongoing projects or repairs.You should have a plan in place to pay off the HELOC, as it allows you to continue to borrow against the equity in your home.

Personal Loans

  • Personal loans are a form of unsecured debt.
  • They are typically used to pay for major expenses, like home repairs, car repairs or medical bills that aren’t covered by insurance.
  • These loans have variable rates, which means they can change depending on interest rates in the economy at large or your specific credit profile.
  • They usually have short repayment periods and high interest rates—around 10% or higher—so they’re not ideal if you need the money for an extended period of time (like with a fixed-rate mortgage).

Plumbing issues can be a major headache, but with the right tools and knowledge, you can fix many common problems yourself. Check out our guide on fixing plumbing problems to learn how to tackle issues like clogs, leaks, and more.

Sales Of Personal Assets

Selling personal assets is a last resort for most people, but it can be a viable option to pay for major home repairs. The first step is to identify what assets you can sell. Some examples of personal assets are:

Personal items (clothing, jewelry, sports equipment)

Vehicles (cars and trucks)

Collectibles and other valuables (artwork, furniture)

Next you have to determine how much money your personal asset(s) will generate by selling them on the open market. 

To do this you must find out what similar items are selling for online or in local classified ads and then ask yourself if yours has more value than what they’re currently listed at. 

There’s no definitive answer as each item is unique in its own way and will command different prices based on its condition, rarity, history and so forth.

Credit Cards

Credit cards can be a great way to get money for home repairs. However, they often come with high interest rates and even higher fees. 

Additionally, you may need to pay off your credit card balance in full if you want to avoid paying a hefty annual percentage rate (APR). High credit card minimum payments can also make it difficult for you to keep up with monthly payments for other expenses on top of the high interest rate on your credit cards.

In the end, it’s important to remember that any major investment requires some planning and preparation before making that purchase and this is no exception! 

If you’re looking into financing your home repairs with credit cards, be sure to consider all of the potential costs associated with using this method of payment so that you don’t get yourself into too much trouble later down the road.”

Home repairs can be expensive, but did you know that there may be programs available that can help you get free repairs? Check out our guide on getting free home repairs to learn about different options that may be available to you.

401(K) Loans

One of the most popular methods for paying for home repairs is a 401(k) loan. This type of loan allows participants to borrow up to 50% of their vested balance in order to pay for expenses such as medical bills, education costs and home repairs.

For example, if you have $10K saved up in your 401(k), then you could borrow up to $5K from that account. You are required to pay back the loan within five years with interest—typically at an annual rate of 5%.

While this method may seem like it offers instant access to cash, there is always an opportunity cost associated with borrowing from yourself. 

If you withdraw funds from your 401(k) instead of contributing them each month, then they’re not growing tax-deferred over time. 

So while taking out a small 401(k) loan may be necessary now and then (e.g., when there’s no other option), don’t use it as a long-term fix it will take away from future growth potential!

401(k) Loans Table

Can be easy to qualify for, as you’re essentially borrowing from your own retirement savings.Borrowing from your 401(k) can negatively impact your retirement savings, as you’ll have to pay interest on the loan and your savings will miss out on potential growth.
Can offer lower interest rates than other types of financing, particularly if you have good credit.If you leave your job or are terminated for any reason, the unpaid balance of the loan may be due immediately.
May not require a credit check or collateral, as the loan is secured by your 401(k) savings.Some plans may have restrictions on the reasons you can borrow, or how much you can borrow.
Repayments are made with after-tax dollars, which means you don’t have to pay taxes on the funds again.If you’re unable to repay the loan on time, you may face penalties or taxes for early withdrawal of your retirement funds.
Can be a good option if you need a significant amount of money for home repairs and have a stable income to make repayments.Taking on additional debt can affect your credit score, especially if you miss payments or default on the loan.

Cash-Out Mortgage Refinancing

Cash-out refinancing is a way to get cash out of your home. It’s often used to pay off other debts, like credit cards or student loans. You can also use the money for any purpose you’d like—you could use it to buy a new car, or take a vacation, or pay for home repairs.

The process involves selling your house and then taking out a new mortgage with more money than what you paid for the property (which means more debt). 

The interest rates on these loans are usually higher than those on conventional mortgages because there’s more risk involved when borrowing against an asset as expensive as real estate. 

However, since the goal of this type of financing is often short term such as paying off an existing mortgage loan quickly higher payments may not be an issue if they mean lower overall costs over time.

If you’re involved in the landscaping industry, having the right equipment is crucial to your success. Check out our guide on building a landscaping trailer to learn about how to build a custom trailer that suits your needs and budget.

Traditional Mortgage Refinance

A traditional mortgage refinance is an option that allows you to take out a new mortgage on your home, even if your monthly payments are already low. 

This can be a good choice if you’re looking for lower interest rates or longer-term repayment options. 

The average borrower saves $16,000 in costs over 15 years by refinancing instead of paying off their current loan early with a lump sum payment. 

Home Equity Loans

A home equity loan is a type of home equity financing, which means you’re getting a loan against the value of your own home. This type of financing can be taken out by anyone who owns their house, but it’s best suited for people with significant equity in their properties.

Homeowners can use this money to pay for major repairs or renovations that would otherwise be beyond their budget.

Home renovations can be expensive, but there are many different ways to pay for them. Check out our guide on how to pay for a home renovation to learn about the different financing options that are available, from home equity loans to personal loans and more.

Home Construction Loans

Home construction loans are for building or improving a home. They’re also commonly used to purchase land, building materials and tools/equipment. These loans can be used to pay for labor as well.


We hope this post has helped you understand some of the different ways people can pay for home repairs. 

The best way to pay for major home repairs is to save up and budget, but if you don’t have enough money it can be tempting to take out a loan or use credit cards. 

However, if you have any doubts about whether or not your repair project will go smoothly, then consider getting a professional opinion before beginning work.

Further Reading

If you’re looking for more information on how to pay for home repairs, check out these helpful resources:

How to Pay for Pricey Home Repairs: This article provides tips on how to finance major home repairs, from choosing the right loan to exploring different payment plans.

How to Pay for Emergency Home Repairs: When a home repair emergency strikes, it’s important to know how to pay for it. This guide offers advice on how to handle these unexpected expenses.

How I Paid for Home Repairs and More as a New Homeowner: In this personal essay, one new homeowner shares her tips for handling unexpected home repairs and other expenses that come with homeownership.


What are some common home repairs that homeowners face?

Some of the most common home repairs include plumbing issues, electrical problems, roof repairs, and HVAC system fixes.

How much do home repairs typically cost?

The cost of home repairs can vary widely depending on the type of repair needed, the severity of the problem, and where you live. In general, however, major home repairs like roof replacement or foundation repair can easily cost several thousand dollars or more.

Are there any government programs that can help homeowners pay for repairs?

There are some government programs available to help homeowners pay for repairs, particularly for low-income households or those with disabilities. Some programs may provide grants or low-interest loans, while others may offer tax credits or other types of financial assistance.

How can I save money on home repairs?

To save money on home repairs, consider tackling some of the work yourself if possible or getting multiple quotes from contractors to find the best deal. Additionally, keep up with regular maintenance tasks like cleaning gutters and changing air filters to help prevent bigger problems down the road.

How can I avoid unexpected home repair expenses?

While some home repairs are unavoidable, regular maintenance and preventative measures can go a long way in keeping your home in good shape. Be sure to keep up with regular home maintenance tasks, such as cleaning gutters, inspecting your roof, and checking your HVAC system. Additionally, it’s a good idea to have a home warranty or a rainy day fund to cover unexpected repair costs.