Key takeaways
- A retired household has four ways to pay for a new shower: promotional financing on approved credit, cash from savings, a home equity line of credit, and Bulldog's discount for homeowners 65 and older.
- Promotional financing turns the shower into a monthly bill and leaves savings alone, as long as you read the no-interest terms for deferred interest.
- A withdrawal from a traditional IRA counts as taxable income, and a home equity line puts the house up as security.
- Ask the consultant for the quote both ways and take it to your financial adviser.
The written quote for the master shower is on the kitchen table in your Anderson Township ranch, next to the pension statement and the laptop with the bank's website open. The 401(k) is for the next twenty years, and neither of you wants to take a bathroom out of it. Bathroom remodel financing for retirees comes down to four choices: a promotional financing plan, cash from savings, a home equity line of credit, and the discount for homeowners 65 and older. The questions below take them one at a time, with what each one costs you besides the shower.
Bulldog does not post job prices. A consultant measures your shower and leaves a written quote, and the estimate is free. This post is general information about paying that quote, not financial or tax advice, and the right answer depends on your accounts and your tax return, so talk to your financial adviser before you move money for a remodel. Our post on bathroom remodel financing for about the cost of a cable bill explains the plans, the credit application and your right to cancel after signing. This one is about choosing between the ways to pay when the income is fixed.
Bathroom remodel financing for retirees: four ways to pay
| Option | Where the money comes from | What to watch |
|---|---|---|
| Promotional financing | A lender, on approved credit, paid monthly | Deferred interest and the date the no-interest window closes |
| Cash from savings | A savings account, a CD or a retirement account | Taxes on retirement withdrawals and the cushion left after |
| Home equity line of credit | Your bank or credit union, borrowed against the house | A variable rate, fees, and the house as security |
| 65-and-older discount | Bulldog, off the quote | Whether it goes with other offers; details from the consultant |
Promotional financing on a fixed income
How does promotional financing work for a retired couple?
With promotional financing, qualified buyers get a new shower for as low as $150 a month, or 12 months no interest, on approved credit. The lender approves the application and sets the terms, and the terms vary from one applicant to the next; Bulldog does not make that call. The appeal for a household on a pension and Social Security is that the shower turns into one more bill on the first of the month, next to the electric and the water, and the savings stay put.
On a fixed income, do the arithmetic on the no-interest plan before you pick it. To finish inside the window you pay the balance divided by the number of months, and that check runs much larger than the payment on a standard plan with a longer term. If it doesn't fit inside the pension and Social Security deposits each month, the no-interest plan only works with savings standing behind it.
What should you read in a no-interest offer?
Read for two things: whether the interest is deferred, and the date the window closes. The Consumer Financial Protection Bureau explains that an offer worded "no interest if paid in full" within a set period is a deferred-interest offer: the lender tracks interest from the purchase date and adds it to your balance if any of the promotional balance is left when the period ends. A true zero-interest offer charges interest only on what remains, starting the day the promotion ends.
The same CFPB page warns that the minimum payment due is usually not enough to pay off the balance by the end of the period. In the lender's disclosure, find these four things before you sign:
- Whether the plan is deferred interest or true zero interest.
- The exact date the no-interest window closes.
- The interest rate that applies once it closes.
- The monthly amount that clears the balance before that date. Work it out yourself; don't rely on the minimum printed on the statement.
Then set that amount up as an automatic payment from checking, and write the closing date on the calendar by the phone.
Will the lender count a pension and Social Security?
Yes. The CFPB says lenders may not discount or refuse to consider income from a pension or other retirement benefit, or from Social Security. A lender can still look at the amount and how likely it is to continue. The cable-bill post goes through the application itself.
Paying cash for a new shower from savings
Is paying cash better than financing?
Paying cash costs no interest and leaves no bill behind, and for a couple whose savings run well past what they keep for emergencies, it's often the plain answer. The question is what the money was doing before the shower. A savings account is one thing. Money in a traditional IRA or 401(k) is another, because taking it out has a tax cost.
Whatever account it comes from, leave enough behind for the water heater that quits in January. And if the money sits in a CD that hasn't matured, ask the bank what breaking it early costs. A no-interest plan that runs until the CD comes due may cost less than the penalty, as long as you pay the plan off inside the window.
What does taking money from an IRA cost at tax time?
The IRS says tax on a traditional IRA is generally deferred until you take a distribution, and that distributions are generally taxed as ordinary income. A withdrawal big enough to pay for a shower lands on one year's return. The IRS also says other income is considered in working out whether your Social Security benefits are taxable, and that a couple filing jointly adds the spouse's income in. A large one-time withdrawal adds to that other income, so in that year more of your Social Security may become taxable. Take the quote to your tax preparer before you call the brokerage.
Home equity line of credit on a paid-off house
How does a HELOC work?
A home equity line of credit, or HELOC, lets you borrow again and again against your equity, which is the value of the house minus what you still owe on it. On a paid-off ranch, the equity is the whole value of the house. The CFPB says you can borrow up to your limit during a draw period that can last about 10 years, and that HELOCs usually carry a variable rate, so the payment can change from month to month. The same page says monthly payments are often much higher once repayment starts at the end of the draw period. Some plans let you lock part or all of the balance at a fixed rate.
What are the risks of a HELOC for a retiree?
The house is the security. The CFPB puts it in one line: if you fall behind or can't repay on schedule, you could lose your home. Lenders may charge fees to open the line, and some plans require you to borrow a minimum amount.
For a couple who made the last mortgage payment years ago, putting a lien back on the house for a shower is a real decision. A HELOC makes more sense when you expect to use it for more than the bathroom, the kitchen next spring or a roof, and your bank or credit union offers good terms. Ask them for the rate, the fees and the payment after the draw period ends, and put those next to the plan the consultant shows you.
The discount for homeowners 65 and older
Who gets the 65-and-older discount?
Bulldog offers a discount for homeowners 65 and older. The design consultant has the details and goes over them at the estimate, so mention it when you call to book. The site also lists current promotions on qualifying full remodels and savings for active-duty military and veterans.
Can the discount go with financing?
The financing page says promotions cannot be combined with other offers and sends you to the design consultant to pick the offer or plan that does the most for your project. Ask for the quote written two ways, once with the discount and once with the financing, and compare the totals.
Picking a way to pay: two example households
A couple in Anderson Township on a pension and two Social Security checks
This couple has a paid-off 1968 ranch, a pension, two Social Security checks and a 401(k) they want to leave alone. The monthly plan fits them, since it puts the shower in among the bills and keeps the 401(k) out of it, provided they read the disclosure for deferred interest. If one of them turns 65 before the estimate, they should ask the consultant whether the discount does more for them than the financing.
A widow in Hyde Park with a clawfoot tub
She is 71, lives alone in a 1920s Tudor, and the clawfoot tub upstairs has become hard to get in and out of. She worries less about the price than about a crew in the house for weeks. If she has savings past her emergency cushion, cash from a savings account, with the 65-and-older discount on the quote, keeps it simple: no new bill and no application. Her daughter in Mariemont can sit in on the estimate. On a tub-to-shower conversion, our crew takes the tub area to the studs and has the new shower in by evening, and she takes her first shower the next morning. The floor and the rest of the room are a separate, longer job, and we say so up front.
Paying for a Bulldog shower on a fixed income
With promotional financing, qualified buyers get the shower area gutted to the studs and rebuilt, new base, walls and fixtures, with the lifetime warranty on the product and the work for as long as you own the home, for as low as $150 a month, or 12 months no interest. Both are on approved credit. Get the shower now and pay later.
The financing page has the current plans, and current promos shows what is running the week you call. For what sets the number on the quote in the first place, read what a one-day bathroom remodel costs in Cincinnati. Call (513) 657-3750 or send us your address and a good time, and tell the consultant how you plan to pay so the quote comes back written that way.
One-day shower replacement in Cincinnati puts the whole job in one place: what it covers, what it doesn't, and how to judge a bid.
