Home Renovation vs Remodeling: What’s the difference?

Renovation and remodel often get used interchangeably when talking about updating a home, but they aren’t the same.  

Renovation refers to smaller projects intended to update a room or home, while remodel is used for larger projects that can completely change a room or home. Both home remodels and renovations can be beneficial to owners while living there, as well as increasing their home value for when they plan to sell. 

Depending on the remodel, you may need permits before beginning. Renovations tend not to need permits to complete. This can help make renovations quicker and cheaper than a remodel.  

One way many people choose to pay for their renovations and remodels is through a renovation loan. To find out if a loan is right for any renovations or remodels you are planning, apply now! 

Renovations are smaller projects that improve a space’s attractiveness or functionality. The term renovation refers to projects that don’t alter the structure of your home or purpose of your space. Most renovations are straightforward and can be done in a short period of time. 

Some common renovation projects are: 

• Painting or wallpapering a room 

• Replacing light fixtures 

• Changing hardware in bathrooms or on cabinets 

• Installing new bathroom faucet, vanity or mirror 

• Adding window shutters 

• Replacing cabinets 

• Changing out locks or doors 

Larger home updates that change the purpose of a space or the structure of your house qualify as a remodel. These types of projects tend to need a professional or permits to complete. Some of the reasons these projects are difficult to complete in a weekend are due to the demolition that can be involved, running any new electrical and plumbing lines, or moving load bearing walls. 

Which types of projects are involved with a home remodel? 

Unlike renovations, remodeling projects are normally for entire spaces. Some common remodel projects and what they entail are: 

• Kitchen: Updating countertops, appliances and cabinets are practical remodels, and energy efficient upgrades could reduce your utility bills. 

• Bathroom: New fixtures, layout, hardware and finishes can brighten the space, add storage and improve appearances. 

• Exterior: Enhancing curb appeal through windows, roofing and siding could increase your property value when you plan to sell. 

• Whole home: An overall upgrading of the entire home, which can include interior and exterior updating. 

• Room addition: Increasing square footage by adding a new space in your home through an extra bedroom or office. 

There are many factors to consider when you are debating whether you should renovate or remodel your home. 

• Budget: Due to the project scope, remodeling can be more expensive than renovating. If you are trying not to spend too much money, a renovation might be a better choice. 

• Impact: Depending on the scope of the project and where you’re planning to do it, the area you are updating may be unusable for the duration of the project. If you are upgrading a spare bedroom, your day-to-day life might not change as much as if you plan to remodel your kitchen or a bathroom. 

• Goals: If you hope to just freshen up a space, a renovation will be a better option. If your goal is to change the whole layout of a room, you might want to look into a remodel instead. 

• Value: Some remodels or renovations can add value to your home. If you are looking to build equity or sell your property, check to see which option will most increase your home’s value. 

• DIY or contractor: Weekend projects that allow you to do it yourself, or DIY, tend to be easier renovations. If you plan a remodel and it looks like permits are going to be involved, your best bet will be to contact a professional. 

There are many different loans available for homeowners looking to renovate or remodel their house. Connecting with a lender is the best way to find the loan that will best suit your home upgrades.  

Starting an application will connect you with a Loan Officer and show you how much money you could borrow for any renovations or remodels you hope to make. 

Apply now to see how much you could qualify for as you consider any renovations or remodeling. 

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.} 

_{Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. Rate does not guarantee or assume liability for the accuracy, completeness or timelines of the information. You should conduct additional research before making any mortgage related decisions.}