Is That Renovation Worth It? Understanding ROI and How a HELOC Can Help

Worth vs. Value: What Homeowners Should Consider

Home renovations can be exciting — and expensive. Whether you're dreaming of a kitchen makeover or finally fixing that leaky roof, it's important to weigh two key factors before you dive in:

1. What will it cost, and how will it impact your quality of life?
   
   
2. How much value will it add to your home?
   
   

These two questions are often at odds. A luxurious bathroom remodel might make your mornings feel like a spa retreat, but it might not add as much resale value as you think. On the other hand, a less glamorous upgrade — like a new garage door — could provide a surprisingly strong return on investment (ROI).

So, how do you know which projects make financial sense? Let’s take a look at what the data tells us.

Renovation ROI: A Snapshot of 2024

Each year, Remodeling magazine publishes its Cost vs. Value Report, offering a breakdown of which renovations offer the best returns. Here are some highlights from 2024:

• Garage Door Replacement
  Cost: $4,513 | Value Added: $8,751
  ROI: 193.9%
  Why it’s worth it: Low cost and massive impact on curb appeal make this a top performer.
• Manufactured Stone Veneer
  Cost: $11,287 | Value Added: $17,291
  ROI: 153.2%
  Why it’s worth it: Another high-impact, exterior upgrade that boosts your home’s first impression.
• Minor Kitchen Remodel (Midrange)
  Cost: $27,492 | Value Added: $26,406
  ROI: 96.1%
  Why it’s worth it: Updates to cabinets, appliances, and countertops without a full gut job can nearly pay for themselves.
• Major Kitchen Remodel (Upscale)
  Cost: $158,530 | Value Added: $60,176
  ROI: 38.0%
  Why to pause: High price tags don’t always equal high returns. Choose carefully based on your goals.
• Deck Addition (Wood)
  Cost: $17,615 | Value Added: $14,596
  ROI: 82.9%
  Why it’s worth it: Especially in warmer regions, decks add both usability and resale appeal.
  
  

Not every project yields the same results. Some renovations — such as a primary suite addition — may enhance your daily comfort but offer a lower ROI (as low as 23.9%). That doesn’t mean they aren’t worth it, but it does mean you should budget wisely and prioritize based on your needs and goals.

Using Your Home’s Equity to Fund Renovations

If the upfront costs of these projects are holding you back, it might be time to explore your financing options. One of the most flexible tools available to homeowners is a Home Equity Line of Credit (HELOC).

A HELOC allows you to borrow against the equity you've built in your home, often with lower interest rates than credit cards or personal loans. Unlike a lump-sum loan, a HELOC gives you a revolving credit line that you can draw from as needed, typically over a 5–10 year draw period.

Here’s why a HELOC could be the right fit:

• Flexible access to funds — borrow only what you need, when you need it
• Lower interest rates — especially when compared to high-interest personal loans
• Great for phased projects — tackle renovations in stages without committing to a large loan upfront
  
  

Whether you’re aiming to modernize your kitchen, replace aging windows, or boost your home’s curb appeal, a HELOC can help make those plans a reality, without draining your savings.

Final Thoughts

While ROI is an important consideration, it's not the only one. Your home is where you live, grow, and create memories. If a renovation brings joy, comfort, or functionality to your life, it may be worth it — even if the resale value isn’t sky-high.

When you’re ready to start planning, talk to a Loan Officer to explore your financing options. From HELOCs to renovation loans, we’re here to help you confidently bring your vision to life.

Ready to get started? Contact us today!