Financing & Rebates

How to Save Money on Home Upgrades: Financing and Rebates in 2025

Home improvements can be costly, but with the right financing options and available rebates, you can ease the financial burden and even save money. In 2025, many homeowners are taking advantage of government and utility rebates, weighing the pros and cons of home equity loans versus refinancing, and planning their budgets carefully for large repairs.

Here’s what you need to know to make smart financial decisions for your home projects this year.

Government and Utility Rebates You Can Still Claim in 2025

Many states and local utilities offer rebates and incentives to encourage energy-efficient upgrades and water-saving landscaping. These programs can significantly reduce your upfront costs.

Popular rebates include:

• Solar panel installation rebates: Federal tax credits cover up to 30% of solar system costs, and some states or utilities add extra incentives.

• Turf replacement rebates: In drought-prone areas like California, many water districts offer rebates for replacing traditional lawns with drought-tolerant landscaping or artificial turf.

• Energy-efficient appliances: Rebates may be available for ENERGY STAR® certified washers, dryers, and HVAC systems.

• Smart irrigation systems: Some utilities offer discounts or rebates on smart sprinkler controllers that reduce water waste.

Always check with your local utility company or state energy office for current programs, as rebates can change annually.

Home Equity Loans vs. Refinancing: Which Is Best for Your Repairs?

When funding large home repairs or upgrades, many homeowners consider tapping into their home equity. Two common options are home equity loans (HEL) and cash-out refinancing.

Home Equity Loans:

• Works like a second mortgage with a fixed interest rate.

• Borrow a lump sum with predictable monthly payments.

• Good for homeowners who want to keep their original mortgage terms.

Cash-Out Refinancing:

• Replaces your existing mortgage with a new, larger loan.

• Can lower your interest rate if current mortgage rates are favorable.

• May extend your loan term, lowering monthly payments but possibly costing more over time.

Choosing the right option depends on your credit, current mortgage rate, and financial goals.

Consulting a mortgage professional before deciding is always recommended.

Budgeting for Large Repairs: Plan Ahead to Avoid Surprises

Major home repairs—like a new roof, HVAC replacement, or foundation work—can be expensive. Planning your budget carefully helps prevent financial stress.

Tips for budgeting:

• Get multiple estimates before committing to a contractor.

• Set aside an emergency fund of 1–3% of your home’s value annually for unexpected repairs.

• Prioritize repairs based on safety and impact on home value.

• Consider financing options early if the repair will require a significant outlay.

Regular maintenance can also help reduce the chance of costly emergency repairs down the line.

Final Thoughts

With the right information and planning, you can make your home upgrades affordable and effective. Take advantage of rebates, choose financing wisely, and budget ahead to protect your investment and peace of mind.

Need help navigating your options? Our team works with trusted lenders and contractors who can help you find the best financing and maximize your savings.