Home renovation financing options

We're in the process of putting an addition on our house to extend our kitchen and we're also renovating our bathrooms. Long story short, the project is estimated to total $70-80k. We've already been approved for and received a home equity line of credit in the amount of $39k at 2.75% (prime less .5%) for ten years. We also have about $80k in savings (not including our retirement plans) that serves more or less as emergency funds.

I'm looking for advice - maybe from others who have completed home projects in the past - on the best way to proceed with paying for the project. We've spoken to a mortgage broker earlier in the year when we were considering refinancing our house given the low mortgage rates and he suggested paying as much as possible in cash for the renovation and using the line of credit as a last resort. Basically his line of thought was to avoid paying any interest if we had the cash accessible, and worst case scenario we could still fall back on the line of credit. I don't know how I feel about this given that rates are so low right now, but I also understand the idea of avoiding interest and ultimately saving money on the overall project.

Any tips or advice would be greatly appreciated. 

In for resurfacing my pool, building a pergola and redoing my kitchen.

1) with the OG stock market tips you're almost guaranteed to get a better return on your cash than the interest rate they'll charge you on the loan so finance as much as possible 

2) aftering watching YouTube videos you can probably DIY the majority of it 

How much equity do you have in your house to pull? How much longer are the current payments?

We got the max line of credit up to 75% loan to value. If we wanted to take more than that, the rate would have been prime plus .5%, so it would have been 3.75%. Therefore, we opted to go no more than 75% to keep the lowest rate.


We're three years into this house, so 27 to go. I'm already paying an additional $400 a month towards the principal every month to hopefully cut a bunch of years and additional interest off the mortgage.

You can borrow against your retirement now cuz of covid. At least I can. CARES act