Financing Your Kitchen Remodel
Looking at the cost of a kitchen remodel may induce a major case of sticker shock for some people. It’s important to remember that your kitchen is the most heavily used room in your home so a remodel will affect your family’s functionality daily. Another thing to remember is that although it might cost a bit more than other home improvement projects, a kitchen remodel directly impacts the value of your home, so it is money well spent. If those things don’t put you at ease, you will be glad to hear that there are a lot of options when it comes to financing your kitchen project. Here are a few ways you might consider.
If you are doing a smaller kitchen project, it might be something that you can just put on your existing credit cards. This is a good option because it means you can start your project right away since you don’t have to wait on an approval process. However, as you already know, most credit cards come with high-interest rates so you might end up paying a lot more for your kitchen in the long run. Another thing to keep in mind is your credit limit. There are always unexpected additional expenses during a home improvement project, so if your working budget is already close to your limit, you will not have much wiggle room for those surprises.
FHA 203(K) Rehab Loan
If you happen to be planning a kitchen remodel on a new home purchase, an FHA 203(k) loan might be a good option for you. This is a type of mortgage loan that will include both the purchase price and the remodeling costs in one loan and, in turn, one payment. This is a great option if you are purchasing a fixer-upper and want to get working on the repairs and renovations right away. Of course, this would only be an option if you are purchasing a property, not if you are an existing homeowner wanting to remodel your current kitchen.
Home Equity Loan (HEL) or Home Equity Line of Credit (HELOC)
Both a HEL and HELOC take advantage of the existing equity you have in your home. Because of this, you are essentially just borrowing money for yourself and using your home as collateral. However, it is still dependent on current market prices in your area, interest rates, and the terms of whichever lender you choose. HEL and HELOCs also come with closing costs and financing fees so there might be more upfront costs than you’re willing to take on.
Unsecured Personal Loan
Finally, personal loans are always a good option for home improvement projects. They are typically pretty easy to obtain and can be less time-consuming than other types of financing. These are fixed-rate loans that come in a lump sum in a variety of amounts; you might even have your funds in your bank account that same day as approval. Because of the flexibility of personal loans, they are probably the most effective way to borrow money for any size and scope of kitchen remodel project. Kitchen Solvers partners with financing vendors to bring you low rates on home improvement loans for your whole project or even just a portion. You can learn more here www.kitchensolvers.com/financing
As you can see, there are plenty of options to make your kitchen remodel more feasible. Hopefully, that allows you to get started on your project sooner rather than later. When you’re ready to take that next step, give your local Kitchen Solvers a call and we can help with financing too!