How to Afford to Remodel or Redesign Your Kitchen 

If your kitchen feels tired and outdated, you’ll want to consider a remodel or redesign.

The typical cost for a full kitchen remodel can be anywhere upwards of $10,000, though. So, before you go ahead with your remodeling plans, you’ll need to ensure you have the funds to complete the project.

Here are some of the options available to you.

Use Your Savings

If you have enough money in your savings account, using that cash for the remodel or redesign of your kitchen could be a good option; especially when you consider that a new kitchen can increase your home’s value by a significant amount.

Indeed, a kitchen remodel typically increases a home’s worth by 5%.The added benefit of using your savings is that you don’t have to repay the money. Nor do you have to pay any interest.

However, when you use your savings, you could end up using all or most of your saved money, which might not be the best solution, as it’s always best to have savings in the bank for emergencies.So, one of the following options may suit you better.

Take Out a Personal Loan

One option is to take out a personal loan. Just make sure you shop around to find a lender with the best interest rate and terms and conditions. A personal loan is a fast and easy way to access funds for your new kitchen.

You can typically borrow anywhere between $1,000 and $50,000. Also, you can choose to repay the loan over a longish period with many lenders.

Ask Friends and Family

If you’re comfortable in doing so, you could always talk to friends and family members about borrowing money for the kitchen remodel. And you can always agree to pay a certain amount of interest to make it worth their while and to not feel indebted to the person.

Use Your Home to Afford Your Kitchen Remodel

If you have equity in your home, speak to your mortgage lender about freeing up some cash that you can spend on your new kitchen. Alternatively, consider taking out a new home mortgage. You could get a good deal that makes financial sense.

For instance, with SoFi home loans, you can get up to a $9,500 real estate commission rebate. That equates to nearly the typical minimal cost for a kitchen remodel.

Look at Federal Program Options

Following on from the last suggestion, you may also have the option of taking out a loan for home improvements through a federal program.

For instance, the Section 203(k) program, which is provided via the U.S. Department of Housing and Urban Development, enables eligible people to take out a new mortgage or refinance their existing mortgage and include the cost of the home renovation in the loan.

There are limits on what you can use the Section 203(k) program’s funds for, but kitchen renovations are included.

Get a New Credit Card

Another option is to get a credit card with a 0% promotional rate. That way, you won’t have to pay interest on the money you borrow.

This can be a great idea if you’re planning a smaller kitchen remodel and can pay back the money quickly.

For this option to make financial sense, make sure you will be able to pay off the amount you borrow on the card before the higher interest rate kicks in. Typically, you’ll have around a year to pay off a credit card with a 0% rate.

Final Thoughts

Once you have figured out what the best financing option is for you, whether that’s getting a new credit card or a new mortgage, you can decide on what kind of kitchen remodel or redesign you want. You can also then determine the best ways to prepare for your kitchen renovation.