Skip Navigation Documents in Portable Document Format (PDF) require Adobe Acrobat Reader 5.0 or higher to view,download Adobe® Acrobat Reader.
BTC Bank

Home Improvements That Provide the Best ROI & Add Value

Home improvements that provide ROI

With Americans spending more time at home during the COVID pandemic, many have been inspired to revamp their living spaces. Home renovation projects are on the rise. Harvard’s Joint Center for Housing Studies estimates that Americans spent approximately $337 billion on home renovation in the second half of 2021.

If you’re dreaming of big changes to your home in Missouri or Iowa, it’s important to do some research before choosing to invest in a renovation project. Without careful planning, it’s easy for your remodel to come in over budget or result in a small return on investment when you decide to sell your home. Recent studies show that the average return on investment for home renovations is only 60.1 percent. That means that 33.5 percent of your renovation budget does not contribute to increasing your home’s value. In order to get the most value out of your home renovation, follow these tips for the best ROI home improvements.

Home Improvements That Generate the Best ROI

Extensive research is done on recent home sales to identify which home renovations pay off and which ones fall flat. If you’re looking to invest in your home and update your features, these eight projects will result in the most bang for your buck.

Garage Door Upgrade: Adding a new fiberglass or steel garage door can result in a 98 percent ROI. If you don’t want to completely replace the door, adding a fresh coat of paint or modern garage door skin is a step in the right direction.

Exterior Manufactured Stone Veneer: A stone exterior is a popular look that can result in a 95 percent ROI. Replacing the lower half of your siding or a prominent accent feature with stone veneer is an easy way to modernize your home and create curb appeal.

Minor Kitchen Remodel: When it comes to kitchen remodels many Americans find themselves way over budget. For the best ROI, 81 percent on average, keep your kitchen renovation simple. Refinish just the fronts of your cabinets with modern colors and styles, replace any laminate countertops or flooring, and update your appliances if needed.

Exterior Siding Replacement: Providing an average 77 percent ROI, replacing the siding on your house can update and refresh the look of your home.

Wooden Deck Addition: Adding a deck to your home creates usable living space for relaxing and entertaining. A very popular feature on homes, a deck addition can result in a 76 percent ROI.

Front Door Replacement: Something as simple as replacing your front door can have a big effect on your home’s desirability. Steel doors are the most popular upgrade, but fiberglass front doors are also a good investment. A new front door will average a 75 percent ROI.

Vinyl Window Replacement: New windows make your home look brighter and newer. They can also lower your heating and cooling costs if they are more energy efficient than your previous windows. Adding new vinyl windows should net you a ROI around 72 percent.

Finished Basement: An unfinished basement can add around $15,000 to a home’s value. By finishing the basement into a livable space, the value of that basement can increase to $40,000. With an average 70 percent ROI, this is a project that could increase your family’s living space and your home’s value.

Lower-Cost Home Improvements that Add Value

Not every home renovation needs to be a big or expensive project. Sometimes it’s the little touches that make you feel happier at home and increase your home’s value. Modernizing your home has the added result of investing in features and technologies that are more energy-efficient. According to, “A survey by the National Association of Home Builders found that homebuyers would spend at least $7,000 more on a home if it included technology and upgrades that could help save them $1,000 a year in annual utility costs.” Some examples of lower-cost improvements that add value to your home include:

  • Smart home technologies
  • Backyard fencing
  • New interior paint in neutral colors
  • Stainless steel appliances
  • Modern accessories and fixtures
  • Upgraded window treatments
  • Fresh mulch and perennial plants

Financing Options for Home Renovations and Updates

Now that you know which renovations provide the best return on investment, it’s time to decide how you will fund your home projects. You may have cash on hand to cover small home improvements, but adding a deck or remodeling the kitchen can add up to over $10,000. At BTC Bank, we have the best options for financing home renovations in Missouri and Iowa.

Home Equity Loans

Your home equity is the difference between your home’s current value and the amount you owe on your mortgage. For example, if your home is valued at $300,000 and you owe $220,000 on your mortgage then you have $80,000 in home equity.

Take advantage of your home equity with a loan for a portion of the equity amount. Home equity loans in Missouri, also known as second mortgages, are dispersed in a lump sum. This is ideal for home renovations where you need to purchase all of your supplies at once. You can lock in a fixed interest rate and repay the loan with regular, unchanging monthly payments for the life of the loan.


Another way to tap into your home’s equity is with a home equity line of credit (HELOC). You’ll be approved from a maximum sum based on a portion of your home equity. Similar to using a credit card, a HELOC allows you access your loan amount a little at a time, as you need it. You only pay interest on the money you have actually borrowed, not the full approval amount. For complicated home renovations that take months to complete, a HELOC will save you from paying interest on funds that you don’t need until a later date.

Home Improvement Loans

Home renovation loans are a type of personal loan offered by banks, credit unions, and online lenders. Personal loans are unsecured, meaning they don’t use your house or any other large asset as collateral. Qualification for a home improvement loan is often tied to your credit score and debt to income ratio. You won’t be able to borrow as large a sum as a home equity loan would give you, so home improvement loans are best for small and moderate sized projects.

Start Planning Your Home Renovations

When you're looking for home remodel loans in Missouri, look no further than BTC Bank.

Our helpful associates will guide you to the right funding for your dream renovation. We’ll help you explore loan options, compare interest rates, and calculate your home equity. Ask a BTC lender if a Home Equity Loan or Home Improvement Loan is right for your home renovation. Contact an experienced lender or visit one of our 22 locations in Albany, Beaman, Bethany, Boonville, Buffalo, Cameron, Carrollton, Chillicothe, Columbia, Fayette, Gallatin, Gilman City, Hardin, Jamesport, Maysville, Oregon, Osborn, Pattonsburg, Salisbury and Trenton, Missouri and Lamoni, Iowa.

Mortgage Lending icon


The right home loan will give you the go-ahead to make more memories.

Piggy Bank Icon


Saving for that special occasion, children's education, home improvement, or travel?