Bathroom renovation can be a complicated process — for example, the complex plumbing and installations. And yet, a bathroom remodel is a popular home improvement project among homeowners — whether for design upgrade or maintenance, or both. However, changing your bathroom’s look and functionality comes at a cost. And, that’s why you need the best bathroom remodel financing to cover all the costs and fees. 

According to the National Association of Home Builders Remodeling Marketing Index, bathroom renovations are one of the most common home improvement projects.

Before you begin working on your bathroom remodel, keep in mind that you’ll have to pull a permit — whether you undertake the work yourself or hire a professional. Pulling a permit would ensure that everything done in the bathroom meets the building code and passes inspection once the work is complete. 

Make sure that the bathroom professionals you hire, including bathroom designers and builders, are familiar with the current building and plumbing codes. 

How much does the average small bathroom remodel cost? 

The average cost of remodeling a bathroom runs between $6,000 to $25,000 — with most homeowners spending around $10,000. The total remodeling cost depends on the scope of work, the size of the bathroom, the labor cost, material cost, the number of bathroom fixtures, the scale of the bathroom remodel and your zip code. 

The lowest price for a minor bathroom remodeling, with basic repair and paint job, has been found around $2,000 while extensive projects fall on the higher end of the scale.

The national average to remodel a small bathroom is $6,500, but ranges anywhere between $1,500 and $15,000, or more. That translates to $70 per square foot for low-end bathroom fixtures with DIY labor, and $250 per square foot for high-end bathroom fixtures that’s been installed by a licensed contractor.

Planning a renovation for your bathroom? Try our free bathroom remodel cost estimator; it’s easy and quick!

Oftentimes, that dream bathroom of yours costs you more than anticipated. And, that’s why it’s important to carefully look at your bathroom remodel financing options before committing to anything large-scale.

Read more: Why should I estimate my bathroom remodel?

Bathroom remodel cost breakdown

Take a look at the average costs for some of the most common bathroom fixtures and fitment:

Can you remodel a bathroom for $5000?

You can get your bathroom remodel down to around $5,000 if you absolutely plan your project well. The most powerful tool in saving costs is understanding the remodeling process and choosing the most cost-effective ways.

Here are some inexpensive bathroom remodeling ideas that can save you good money.   

  • Limit the usage of tiles in your bathroom.
  • Save money by choosing inexpensive bathroom countertops.
  • Paint the bathroom yourself instead of hiring a professional painter.
  • Update your bathroom with cost-effective light fixtures, sink faucets, towel racks, and drawer pulls.
  • Clean the grout and caulking around the tub and sink.
  • Refinish your bathroom fixtures yourself.
  • Opt for repurposed, quality fixtures (even toilets and showers) instead of buying new ones. 

Read more: Plumbing financing for good & bad credit

Does remodeling my bathroom improve the value of my home?

A bathroom is one of the most essential parts of any home. According to the National Association of the Remodeling Industry, updating or adding a new bathroom is one of the best ways to add value to your home. Moreover, such a home improvement project improves the salability of your home or makes it more practical for you and your family members. 

Want to know which home improvements give you maximum return on investment? Kukun’s How to Prepare Your House for Sale tool will give you the best answers!

Pros and cons of a bathroom remodel

Remodeling a bathroom can impact both its functionality and the resale value of your home. An updated bathroom will not only look great, function well to suit your lifestyle, but also become your favorite retreat at the end of a long day. 

Having said that, undertaking a bathroom remodel is a serious job. Before beginning working on one, it’s a good idea to evaluate the pros and cons of a bathroom renovation.

Pros Cons
Homeowners can recoup up to 50% of the cost put into the projectBathroom remodeling is an expensive undertaking, of course depending on the scope of the remodeling  
Adds to your bathroom’s functionality and appealRemodeling a bath can take as long as six weeks to complete

What is the best way to finance a bathroom remodel?

If you’re wondering how to pay for your bathroom remodel, you are not alone. While a financial advisor will recommend paying for your bathroom remodeling project with cash, as it saves hundreds in financing costs, it’s a very impractical solution. Who keeps $10,000 to 20,000 lying around? 

The good news is that there are a few good ways to finance the bathroom of your dreams. Some of the best loans for bathroom remodels include home improvement loans, home equity loans, credit cards, and more.

Read more: Easy hot tub financing options for good & bad credit

What are the different bathroom remodel financing options? 

If and when you decide to finance your bathroom upgrade, you have many options — a home equity loan, home equity line of credit, a personal home improvement loan, or through a credit card. Let’s explore some of these popular bathroom remodel loans in more detail.

Home equity lines of credit (HELOCs)

A home equity line of credit aka HELOC gives you access to a line of credit that’s ensured by your home equity. Your home equity is calculated as the difference between your home’s market value and your remaining mortgage amount.

You can use the funds during your draw period (usually 10 years). And then, repay the loan at a variable interest rate during the repayment period of time. Such a loan comes with low-interest rates but utilizes the equity in your home. 

Home equity loans 

In the case of home equity loans, you get a fixed amount of money that you repay in fixed monthly installments. Such a loan is best when you know how much money you’ll need for your bathroom remodel. Like in the case of a HELOC, here too, you use your home as collateral to secure the loan. The only downside is that if you fail to repay the secured loan or the scheduled monthly payments, you may stand to lose your house.

Cash-out refinance

Refinancing a mortgage is a good idea when you take out a new mortgage whose rates are lower than the original mortgage rates. That way, you can use the extra cash for your upgrades — especially if they are large-scale, expensive projects. Such a financing option balances the effort and cost of an appraisal, closing costs, and other mortgage loan fees.

Personal loans

An unsecured personal loan is another popular bathroom remodel loan. This type of loan is a good option when you require funds quickly. Most personal loan lenders can get you the lump sum loan amount in as few as one to three days. 

If you want the required funds but do not want to put up any collateral, a home improvement loan (a kind of personal loan) is your best option. It helps you finance smaller-scale home renovations, remodel, or repair works. 

Credit cards

If you decide to use a credit card to finance your bathroom project, do keep a few things in mind. Credit cards are an expensive way to remodel your bathroom. The average APR is usually around 16% and the interest tends to accumulate quickly. 

Consider using credit cards only if you’re able to secure low-interest rates and low costs. Or, if you take advantage of an introductory 0% financing offer and are confident enough to pay down the debt during the promotional period. 

Company financing

Today, many of the home improvement stores and companies offer loans that can be used for home improvement projects — with some stores even offering 0% introductory financing for eligible customers. Especially those with an excellent credit score.

However, there could be a catch if you’re not careful enough. Maybe hidden costs and fees. Do thoroughly read the terms and conditions and evaluate the interest rates before zeroing in on a loan. 

Last words

Whether you’re renovating to get the perfect bathroom or have to remodel due to a sudden plumbing problem (like a leaky pipe) or have to quickly sell your home due to a hasty relocation — a bathroom upgrade needs good money. And, that’s when a bathroom remodel financing comes in handy. 

Before you zero in on the loan option that suits your requirements, always consider its immediate as well as long-term financial impact. Do take into account the loan interest rates, loan terms, and interest paid over the course of the remodeling loan. Once you do that, you can be tension free!

Bathroom Remodel & Renovation Financing Options was last modified: March 3rd, 2021 by Ramona Sinha