Thinking about adding a garage, replacing windows or remodeling the kitchen? Whether you decide to use an outside contractor or go the do-it-yourself route, you're going to need some extra money to get the job done

Consumers should inspect their financing options as closely as they would green lumber.

When looking to finance a home improvement you need to ask yourself a series of questions:

• How long is it going to take to do the whole job?

• How much is it going to cost altogether?

• Do I need money for anything beyond this particular set of home improvements?

Your answers determine whether you choose from finance options such as a credit card, a home-improvement loan, a home equity loan or a home equity line of credit. Or even a complete refinance might be the solution.

PULLING OUT PLASTIC
If the job is just a hundred dollars, use the credit card. If the job is going to be more than (a hundred dollars) or it's going to be in stages, maybe add a garage, do some pool repair and remodel the bathroom later on, then options lend themselves toward using the equity in your home.

Tapping into the equity of your home is a low-cost credit vehicle well adapted to financing home improvements. Home equity loans and home equity lines of credit, HELOCs, let you use this asset without selling. In addition, interest payments on a home equity loan are, within limits, deductible on federal income tax (consult your tax advisor).

The amount available depends on the percentage of equity that your lender is willing to lend. Some lenders, under some circumstances, may let you borrow based on the increased amount of equity you'll have after the improvements. In that case a  total refinance might be your best option.

If you're going to do a one-shot, straightforward project such as putting in a pool, which will be paid upon completion of the project, the home equity loan is probably the way to go. The advantage is that you'll be able to budget a fixed monthly payment until the loan is paid off.

But if you have an open-ended project, a HELOC is the most flexible option. It is a definite advantage if your home improvements bring unexpected expenses down the line. For instance, there might be surprises hidden in a wall that a contractor can't see when making an estimate. Or if you're doing the job yourself, you might underestimate the materials needed or even break that shower enclosure you're trying to install.