House Renovation Costs: Items to Budget in Your Home Renovation

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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Are you planning to renovate your home soon? Before you begin scoping out funding options to pay for your home renovations, researching general contractors and securing cost estimates, it’s vital to get an idea of how much your home improvement project(s) will cost. That way, you’ll know what to expect and avoid any surprises once renovation projects are underway. 

Home Renovation Loans

Learn how the RenoFi ReFi cash-out refinance home renovation loan allows you access up to 80% of your home’s projected value after renovation.

How Much Does it Cost to Renovate a House Completely?

On average, homeowners spend around $15,000 on each renovation projection or up to $200,000 on a whole home renovation. However, this figure varies by the extent of the remodel, the number of remodeling projects you have in mind, your home’s age and square footage, and where it’s located. 

Is It Cheaper to Buy or Renovate a House?

It depends on your local housing market. Generally, home prices are more affordable in urban areas. 

You should also factor in the projected cost of the renovations and how much money you’re willing to spend to gauge if buying a new home would be a more sensible financial move. 

Home Renovation Costs to Budget For

If you decide to renovate, here are some average costs to help you calculate your home renovation budget, according to HomeGuide

Floor plan Changes

You’ll need an architect to develop blueprints for your remodel, along with a structural engineer to handle the demolition of load-bearing walls or additions required to make structural changes to your home. 

On average, architects assess a fee between $0.50 and $2.00 per square foot. Plus, structural engineers assess a flat rate of up to $1,000, bringing your average total cost anywhere from $750 to $3,000.


Expect to spend between $2,500 and $6,000 on plumbing upgrades, which could entail swapping out a sink, bathtub or toilet in your bathroom. 

Plumbers charge between $45 and $150 per hour for renovations and $250 to $99 per hour for repairs. 


If you want to install an electrical panel, you’ll spend around $1,200 to $2,500. But rewiring your entire home comes at a much higher cost, ranging from $3,500 to $8,000. 

Electricians generally assess a one-time fee of up to $75 to visit the property and up to $100 per hour for labor costs.

HVAC Upgrade

To install a new air conditioning unit or gas furnace, budget $4,800 and $9,400 to cover the costs. But if you’ll also require new or updated ductwork, which is relatively common if you install a new HVAC system, tack on an additional $1,400 to $5,600.

Home Renovation Loans

Learn how the RenoFi ReFi cash-out refinance home renovation loan allows you access up to 80% of your home’s projected value after renovation.

Home Appliances

The budget for home appliances will depend on what you need and the level of quality you’re willing to invest in. For example, a standard or low-end stove, microwave and garbage disposal with minimal upgrades will cost you up to $1,000 each. 

But if you want to purchase Energy-Star rated appliances, including refrigerators, dishwashers and freezers, you could spend up to $3,000. Or you can add another $1,000 to $2,000 to upgrade to high-end appliances with the latest technology, including Bluetooth connectivity, as a part of your kitchen remodel.

Home Remodeling Permits

The average price of home remodeling permits is between $500 and $2,000 or more for a home remodeling permit. But, again, it depends on the city and state you live in. 

Financing House Renovations Costs

If you’re planning to finance your home renovations, factor in the interest costs of the loan product you select. A good or excellent credit score means you’ll likely qualify for a low-interest rate. However, you’ll pay more in interest over the life of the loan if you opt for an extended payment period to get a more affordable monthly payment. 

How to Pay for Your House Renovation Costs

Finding one that works for your financial situation can be challenging, with many available funding options. So, it’s a good idea to start by checking out what RenoFi has to offer.

RenoFi partners with credit unions throughout the nation to offer home renovation loans with competitive rates. Here’s an overview of its loan products: 

  • RenoFi Home Equity Loan: Borrow up to 90 percent of your home’s after-renovation value with this fixed or variable-rate loan product. Loan amounts range from $25,000 to $500,000, and you’ll get a draw period of up to 10 years. Monthly payments are made over a repayment term of up to 20 years. 
  • RenoFi Refi: You’ll get a fixed-rate loan of up to 80 percent of your home’s after-renovation value, capped at $2,000,000. Loan proceeds are disbursed at closing, and loan terms up to 30 years are available. 

You won’t have to get your contractor involved to get approved for a loan, and there are no draws or inspection requirements. Plus, you could get up to 30 years to repay what you borrow. 

Evaluate your options today by using RenoFi’s loan calculator. It won’t impact your credit score, and there’s no obligation to move forward with applying for a loan. 


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All data provided by the Home Mortgage Disclosure Act, at updated Dec, 19
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