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3. A home equity loan is the classic way to finance home renovations. Take out a loan against the equity in your own house. 1  Large amounts of money may be available for large projects like additions. 2  Lower interest rates than personal loans and credit cards. credit card that you pay off at the end of each month. Or a zero-interest that you don't have to pay off for six months or a year. Some homeowners pay off one zero-interest card with yet another zero-interest card, thereby creating a permanent, but risky, no-interest loan. 1  Money available quickly.
3. Determine the current value of your home. First figure out how much your home has appreciated or depreciated in value. For example, let's say that three years after you buy the home in steps 1 and 2, your home is appraised for $135,000. This is your current home value.. Determine the current value of your home. First figure out how much your home has appreciated or depreciated in value. For example, let's say that three years after you buy the home in steps 1 and 2, your home is appraised for $135,000. This is your current home value.