“How are we going to pay for this?"

We all have the dream of transforming our homes. Why do you think HGTV is so popular? You may have earmarked your tax refund for a special home improvement project, such as adding a deck or patio, replacing a window or door.

But if you have no savings, the first question to ask yourself when dreaming of a home improvement project is: "How are you going to pay for this?" Of course, the best advice is to save in advance and avoid financing altogether. But who has time for that?

There is no doubt that many home improvement projects can give you a good return on investment. At the top of the list are doors, Windows, decks, garage doors and kitchen remodels. But unless you sell your home, you won't be able to take advantage of this return on investment, which defeats the purpose of remodeling your home - to enjoy the results with your friends and family.

So before swinging the sledgehammer, be sure to consider the cost. Is it really worth the money and your "retrofit frustration" - the chaos, inconvenience, and modified schedule? If the answer is "yes," then there are some financing options that will allow you to make the changes you want without impacting your finances.

1) Let your family pay for it

There are two ways to put your home's value to work: a home equity line of credit (HELOC) or a home equity loan.

A HELOC borrows against the value of your home, usually up to 80% of the value of the home, minus the amount of the home loan. The drawdown period lasts for about 10 years, during which you can spend the loan amount. The repayment period usually lasts 15 years, and the repayment amount increases as the principal amount of the loan increases.

A home equity loan also uses the equity in your home, but instead of receiving a line of credit, you receive lump sum money. This is a good option if you don't want to refinance your mortgage, but the interest rate may be higher.

You can compare the pros and cons of these options here.

2) Look for zeros in your email

You may receive credit card offers in the mail every week. While it's best not to charge a credit card for large items with high interest rates, you can look for introductory offers with zero interest rates. Some of them allow interest-free periods of up to 18 months. Divide the amount you need by the number of interest-free months and pay that amount truthfully each month.

Remember to be disciplined when using this method. Make sure to pay off the balance before interest rates go up. After the introductory period, the jump in interest can be staggering.

3) Discuss short-term loans with your contractor

No one cares more about making sure you have enough money to fund your remodeling than your contractor. Many will offer to use third-party lenders or bank loans for financing. This kind of financing usually has an initial interest-free period, just like with a credit card, so it's important to pay off the amount during that time. If it is not repaid, the interest charged will be restored to the initial account opening date. Finally, be sure to research the contractor's reputation as well as the proposed financing before starting the project.