Are you thinking of renovating your kitchen? According to reports, homeowners are increasing spending on kitchen Renos.
Considering kitchens are the heart of the home and a hardworking area, it makes sense to invest in quality materials, custom solutions, and beautiful finishes.
But not every homeowner has a few thousand dollars spare for remodeling a kitchen.
Is a lack of capital coming in between you and your dream kitchen design? It doesn’t have to.
Nowadays, many homeowners turn to financing to make their home projects a reality.
Instead of trying to meet your kitchen remodel cost upfront, keep reading to find out how to get it financed.
Start by Drawing up a Budget
Before you start considering finance options, the first thing to do is draw up a budget.
No matter whether you’re paying for a project upfront or using financing—it’s always wise to try and work within a budget.
If you’re going to take out financing, it can be tempting to simply get a quote and then take out a loan for the total.
Although you can do this, it could cause you to overlook areas where you can save. By drawing up a rough budget, you can get clear on how much you’re comfortable spending on your kitchen renovations, where you want to splurge, and which areas you can save on.
Creating a budget isn’t necessarily about spending as little as possible. It’s about making sure you maximize your money.
Finally, keep in mind that investing in a beautiful kitchen remodel isn’t a bad thing. Remodeling a kitchen can generate a good ROI, and it can also make your home more functional and enjoyable to live in.
Get Multiple Quotes
Once you’ve created a rough budget, the next step is to gather multiple quotes from contractors. This is a very important step because it will help your get clear on the final total that you need financing for.
Once you have a few quotes on your desk, go through them carefully. Take some time to compare not only the totals but the line items as well.
Pick a Financing Time Frame
Before you seek out financing, you should also think about what financing timeframe you’d like.
Ask yourself, how long do you want to take to pay off your kitchen? Do you want to pay it down as soon as possible, or would you like to spread the payments over a few years to keep your installments low?
Compare Your Financing Options
Once you’ve decided roughly how much you want to spend and compared quotes, it’s time to look into which financing option to choose.
Here are some common financing options homeowners use to finance remodeling projects:
- Home equity loans
- Cash-out refinancing
- FHA 203k renovation loans
- Fannie Mae HomeStyle renovation loans
- Personal loans
- Credit cards
Home equity loans are usually the best option for financing something like kitchen renovations. However, it can take homeowners many years to build up adequate equity in their homes to be able to borrow enough for remodeling a kitchen.
Cash-out refinances are probably the second most popular option for remodeling projects. But, they come with a risk. A lot of homeowners make the mistake of refinancing to get capital for a remodel, only to lock themselves into a higher interest rate on their mortgage.
FHA 203k renovation loans and Fannie Mae HomeStyle renovation loans can be attractive because the loan amount is based on your home’s value after renovations, allowing you to borrow more. However, they are highly cumbersome and difficult to use and often require mortgage insurance.
Personal loans and credit cards are not recommended lines of credit to use for home renovations. Both come with high-interest rates, which can drive up the actual cost of your project.
Best Option: Find a Contractor Who Offers Financing
If you have owned your house for some time and have built up a large amount of equity, taking out a home equity loan can be a good financing option.
If this is not an option, don’t stress. There is another financing solution you can take advantage of that’s tailor-made for things like kitchen renovations.
Our Financing Options
Here at Las Vegas Remodel & Construction, we know how important financing can be to our clients. Taking out a loan to finance a remodeling project is one of the most convenient ways to make your dream kitchen design a reality.
Instead of drawing from your savings—or saving up cash for a few months or years—you can beat inflation and get started designing your kitchen right away.
However, no homeowner wants to pay exorbitant interest rates on a line of credit for a remodel project. High-interest rates can make financing a kitchen remodel cost-prohibitive.
We also know that homeowners don’t want to jump through hoops to get approved for financing.
This is why we offer a variety of payment options at affordable interest rates.
If you’re in need of a fast form of finance, you can opt for our 12-month same-as-cash loan and borrow between $1,000 to $45,000.
If you want longer terms, we also offer a 7-year loan at a fixed rate of 6.99%. With this option, you can borrow between $3,500 to $45,000.
As you can see, our finance solutions offer far better interest rates than something like a personal loan. Even if you have a perfect credit score, the average interest rate on a personal loan is between 10.3%–12.5%.
Not only do we provide our clients with affordable interest rates, but we also have a simple and fast approval process.
All you have to do is call (866) 609-0008 and provide the bank’s lending specialist with one of our loan codes. These can be found on our financing page.
After this, you will receive a credit decision within 10 minutes.
Are You Remodeling a Kitchen? We Can Help
The first step to financing a new kitchen design is to create a budget and gather estimates. After this, it’s time to shop around for a financing solution.
Although a home equity loan can be a good solution, a lot of our clients find that our financing solutions are the most cost-effective and convenient option.
If you’re remodeling a kitchen in Henderson, NV, we’re the people to speak to. Not only do we provide attractive financing solutions, but we also give our clients the best customer service around.
We make sure that you’re prepared for every aspect of the remodel, from where the dumpster is going to go to exactly what’s happening in your home and some on what dates via our online calendar.
Are you ready to start designing your dream kitchen? Contact us today.