The kitchen of your dreams may feel like little more than a fantasy as the national average for the price of a mid-range kitchen remodeling project has now reached $58,500. But while that number is certainly substantial, you can anticipate receiving about 2/3rds of that spend back when and if you go to sell your home. That’s one reason why many homeowners seek out a kitchen remodel loan as a way of paying for this type of home improvement project.
Financing a Kitchen Remodel
Maybe you want to put in new cabinetry, perhaps an island, maybe you just want to make the kitchen bigger than it is now. Whatever the project calls for, you’re going to need to know costs first and foremost. Many homeowners who remodel their kitchens will typically conduct lengthy comparison shopping among materials, new appliances, even contractors, in order to get the best price for every facet of the remodel. Gathering estimates is the first step to knowing how much this new kitchen is going to cost. Chances are the price tag of this project is going to be a bit steep coming directly out of your pocket all at once, but why should it be? When you can finance kitchen remodel projects at highly competitive rates these days, the possibility of taking out a kitchen remodel loan is all the more attractive.
Rules about Estimates
The bigger the job, the more chances of your original estimates being woefully inadequate to cover everything from materials to labor to new appliances. That’s why it’s a good rule of thumb to expect the unexpected. That means giving yourself a buffer of about 10% to 20% to account for any overages and setbacks that will end up adding bucks to the budget. This is particularly critical for helping you identify a realistic number for your kitchen remodel financing. You only want to borrow once and if you’re planning on funding the whole project with a kitchen remodel loan it’s important to have the correct number in mind the first time. Plan ahead with your estimates now and you’ll ensure that the job is completed. That includes paying your contractors, purchasing new appliances, and making any changes or fixes to the original plan should something fail to meet local regulations and city codes.
Kitchen Remodel Financing
Whatever your plans for sprucing up your old kitchen, paying out of pocket can be a serious strain on your finances. With so many lenders eager to give qualified homeowners the funding they require, getting a loan is easier than ever. Your rates and the amount you could qualify to receive are each predicated on a variety of criteria including credit score, income background, the current interest rate, and the term of your loan. Some homeowners choose to put up their home as collateral in order to qualify for the lowest interest rate, just keep in mind that you could lose the equity in the home should you fail to repay the loan.
Kitchen Remodel Loan Amounts
You don’t have to embark on a massive kitchen remodeling project in order to apply for kitchen remodel financing. Even smaller jobs, costing as little as $5,000, could be paid in full by kitchen remodel loans. With loans available for as much $100,000 for the major renovation projects, financing a kitchen remodel is a smart and sensible way to get the job done. No matter how big or small your project may be, there are lenders ready to help make the kitchen of your dreams a reality.