Kitchens are undoubtedly the heart of every home. Unfortunately, whether your kitchen renovation project is about creating your dream space or increasing your home’s resale value, kitchen remodeling is expensive. However, kitchen remodeling shouldn’t be frightening, especially with multiple financing options available.
Finding the best financing option may be tedious, but it will save you some time and costs. This guide highlights the estimated cost of kitchen remodeling projects and the best available loans for your kitchen project.
How Much Does a Kitchen Remodel Cost?
Before financing your kitchen remodel, you should begin by identifying the total costs of this project. It is through this that you can understand and make a choice from various available financing options. Whether you are a DIY enthusiast or planning to hire remodeling pros, you probably dread the costs, especially since kitchen renovation is among the expensive home improvement projects.
While the 2020 cost vs. value report ranks kitchen remodeling as the second most costly home improvement project, coming after master suite renovation, Brad Hunter, HomeAdvisor’s Chief Economist, thinks that kitchen renovations shouldn’t be overly expensive. According to Brad, kitchen remodels should cost between $13,341 and $37,700. However, depending on your additions, this cost can quickly add up to six figures.
Kitchen countertops and cabinets are the two costly components in kitchen remodeling. However, if you want to change the entire kitchen layout, you can incur more removing walls, changing electrical and plumbing supplies, and contractor costs. These renovations can increase the total cost of kitchen remodeling significantly.
How to finance your kitchen remodel
The above-mentioned costs shouldn’t discourage you from achieving your dream. Below are some financing options that can cover your kitchen remodeling project.
1. Personal savings
Spending some amount from your personal savings is probably the easiest and most convenient way of financing your kitchen remodeling project without incurring debts. If you’ve been thinking of remodeling your kitchen for some time, you might have been saving some money for this project. Unlike loans, you will have peace of mind knowing that there are no additional interests charged.
2. Take a personal loan
While spending personal savings is prudent, the main drawback is you can’t start the remodeling project until you have saved enough money. If you require an emergency kitchen remodel, personal loans are a good financing option. Personal loans involve borrowing some amount of money from a lender that should be paid as regular installments within an agreed period. The only drawback of this financing option is that it cannot be accessed by homeowners with bad credit history.
3. Take a home improvement loan
Home improvement loans are low-interest loans that are specifically designed for renovation projects. They allow homeowners with insufficient savings to repair, remodel, and renovate their homes. However, these loans often come with strict guidelines and processes that should be adhered to. For instance, lenders assign professional construction draw inspectors to monitor the progress of your remodeling project. This means that any form of discrepancies won’t be tolerated.
Endnote
Kitchen remodeling projects are major undertakings that involve estimating costs, planning, finding contractors, and more. Cash-strapped homeowners can take advantage of these financing options to achieve their dream kitchen.
