Consumers Digest

Home improvement loan or home equity loan?

We want to make some small improvements to our home (refinish hardwoods, new carpet). We owe 135k on a home worth 180k. Which loan would be best?

Public Comments

1. A home equity line usually gives you more flexibility. Though, new carpet and refinishing floors doesn't cost all that much money. Consider saving up and paying cash for it instead.
2. I agree with PelMel - this isn't enough of an expenditure to go into debt over. Save your money and pay cash instead.