While about 42% expect to pay for home renovations in cash, nearly 43% will turn to credit cards or loans to fund work
Foster City, CA – December 22, 2020 –Modernize.com, a leader in the home improvement and home services industry, recently surveyed more than 3,100 homeowners about how they plan to pay for their upcoming roofing, siding, window, HVAC and solar projects. Survey responses include the following highlights:
Expected financing for home renovations
While most respondents plan to pay for home improvements in cash, loans and credit cards will be used by nearly as many people.
- Cash/Check: 41.66%
- Financing/Loan: 29.63%
- Other: 15.37%
- Credit Card: 13.34%
Loan option preferences
For respondents who indicated they would pursue financing/getting a loan, over 25% hope to obtain financing through their contractor.
- A loan through my contractor: 25.33%
- Personal loan: 13.09%
- Home Equity Loan: 7.39%
- Home equity line of credit (HELOC): 6.30%
- FHA or VA Loan: 4.24%
Finance research timing
Those planning to finance were asked about when they will begin researching their financing options.
- After meeting with contractors/after learning more about project cost: 33.48%
- After choosing a contractor for my project: 18.55%
- Before meeting with contractors/I already started researching: 13.27%
“It’s paramount to compare three to four contractor quotes ahead of your project, to find the best contractor, price and financing options,” advises Gregg Hicks, vice president of Modernize.com. “Modernize resources help homeowners research contractors for complex, high-value home renovations and include guidance on home improvement financing to facilitate projects.”
Detailed information on navigating the costs associated with home renovations is available in reports such as: Discussing payment plans, costs, and financing with your contractor.
Hicks is available to interpret recent survey data and comment on the pros and cons of various payment approaches.
For more than 15 years, Modernize has been a leader in the home improvement and services industry, connecting homeowners with contractors and other home services professionals. Modernize operates in more than 15 high-value, high-consideration home segments, including new and replacement windows, solar installation, roofing, heating and air conditioning, siding, bathrooms and kitchens, new and replacement gutters, home security, and others. The business brings a network of more than 1,000 contractors and professionals across all segments, offering broad geographical coverage and choice for homeowners.
Modernize is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. Modernize is a member of QuinStreet’s expert research and publishing division.