Unlock Your Home’s Equity:
How Redlands Homeowners Can Finance a Remodel
Already own your home but dreaming of a major remodel?
Whether you’re planning to update a dated kitchen, add a luxurious primary suite, or completely reimagine your floor plan—your home’s equity could be the key to making it happen.
I recently sat down with RJ from Planet Home Lending, a trusted mortgage expert serving Redlands and the Inland Empire, to talk about how homeowners can tap into their equity to fund high-impact renovations.
What Is Home Equity & How Can You Use It?
Your equity is the difference between what your home is worth and what you still owe on your mortgage. If your home has appreciated over time—or if you’ve paid down your mortgage—you may have access to a large amount of usable equity.
Here are the three most common ways to finance your remodel using equity:
1. Home Equity Loan (Fixed-Rate Loan)
- You receive a lump sum
- Repay it in fixed monthly payments over a set term (10–30 years)
- Ideal when you have a clear budget and want predictable payments
- Flexible line of credit, similar to a credit card
- Draw only what you need, when you need it
- Great for phased projects or longer timelines
- Most have variable interest rates and a 10-year draw period
- Replaces your current mortgage with a new, larger loan
- You receive the difference in cash
- Best if your existing mortgage rate is already high and refinancing makes sense
Real Example: How Much Can You Access?
RJ walked me through a sample scenario that reflects many of my clients:
- Home value: $1,000,000
- 90% loan-to-value limit: $900,000
- Current mortgage balance: $600,000
- Available equity to borrow: $300,000
“Whether you've owned your home for five years or thirty, it’s about what your home is worth now, what you owe, and what payment you’re comfortable with,”
The Key: Get a Plan in Place First
One of the biggest mistakes RJ sees is homeowners pulling money too early without knowing how much their remodel will really cost.
Before you finalize a loan:
- Work with your designer or architect to develop a full scope of work
- Get bids or estimates from contractors
- Build in a 10–15% cushion for changes or unexpected costs
This approach helps you avoid coming up short—or borrowing more than you need.
Not All Projects Are the Same
Some of my clients use equity to cover simple refreshes like flooring, paint, and countertops. Others use it to invest $150k–$300k+ into their homes, completely transforming them. Either way, the right financing strategy ensures your project runs smoothly and aligns with your financial goals.
“We run side-by-side scenarios for our clients all the time,” RJ says. “Whether it’s $75,000 or $300,000, we’ll figure out what works best for your budget and goals.”
Ready to explore your options?
Contact RJ at Planet Home Lending and tell him Annie sent you!
FAQ: Financing a Remodel With Equity
Q: Can I keep my current mortgage rate if it’s really low?
Yes. That’s what makes home equity loans and HELOCs so appealing—you keep your first mortgage untouched and add a second loan for your remodel.
Q: What’s the difference between a home equity loan and a HELOC?
A home equity loan is a lump sum with fixed payments. A HELOC is more flexible—you draw funds as needed and only pay interest on what you use.
Q: How fast can I get the funds?
Some equity loans can close in as little as 7 days, depending on the loan type and documentation. RJ can walk you through timelines.
Q: What if I don’t use all the money?
With a HELOC, you only pay on what you draw. If you borrow a fixed loan and don’t use it all, you can always pay it down early—there’s no prepayment penalty.
Ready to Unlock the Potential in Your Home?
If you’ve built equity in your home, you may be sitting on the resources you need to finally create the space you’ve been dreaming about.
RJ at Planet Home Lending specializes in helping Redlands and Inland Empire homeowners finance remodels through home equity loans, HELOCs, and more. He’ll help you explore your options and build a plan that fits your goals and lifestyle.
Reach out to RJ today and mention this blog.
And if you need help planning your renovation, I’m here to guide you every step of the way.
Ready to explore your options?
Contact RJ at Planet Home Lending and tell him Annie sent you!
Written by:
Hi, I’m Annie — designer, founder of Plein Air Interior Design, and your guide to creating a home that truly feels like you. I specialize in helping Redlands-area homeowners navigate kitchen and bath remodels, space planning, and full-service design. Whether you’re buying a new home or transforming the one you have, I’ll walk you through each decision with clarity, confidence, and creativity.
Annie Gilman
Owner & Principal Designer of Plein Air Interior Design
Masters in Interior Architecture
Bachelors in Interior Design
Want to love your home again?
Schedule a free discovery call to see how we can work together.