home improvement loans

Kitchen Remodel Financing

Everyone knows that the kitchen is the heart of the home. It’s where your family gathers, cooks, eats, and chats. So it’s no surprise that kitchen remodels are one of the most rewarding renovation projects a homeowner can embark on, whether for sale or personal enjoyment.

As one of the few home improvement projects that have a strong return on investment, kitchen remodels are also some of the more expensive tasks. The average price for a full remodel can range anywhere from $12,500 to $35,000, depending on scope and materials. That’s where kitchen remodel financing, often in the form of home renovation loans can help ease the financial burden.

What Is the Best Way to Finance a Kitchen Remodel?

Much like deciding on the materials and contractors, you’ll use in your kitchen remodel, selecting your financing is just as important. There are several choices available, each with its own set of pros and cons.

Unsecured Kitchen Remodel Loan

One of the best ways to obtain financing for a kitchen renovation is with a personal loan. With an unsecured personal loan, borrowers won’t have to worry about the existing equity in their home or using the home as collateral, which takes some of the pressure off. Securing this type of loan is usually quicker than other types of financing as well. Because a kitchen remodel loan usually has lower rates than most credit cards, it is also a smarter long-term decision.

Other Financing Options

Credit Cards

It’s easy to rely on credit cards for lower-cost updates, to avoid complicated applications, and to ensure the process moves along quickly. However, as mentioned above, credit cards often come with higher interest rates, making the overall costs of your project more expensive in the long run. It’s important to evaluate your card’s interest rates, the financial burden of the remodeling project, and your timeline before falling back on a credit card to finance your kitchen renovation.

Home Equity Loans

When considering a home equity loan for a kitchen makeover, there are several factors that come into play. Yes, you can get a lump sum cash payout, much like a personal loan, but you will have to put up your home’s equity as collateral. This option is not feasible for all homeowners, as equity varies greatly depending on region, market, and your current mortgage terms.

Home Equity Line of Credit

Comparable to a home equity loan, a HELOC allows you to borrow money against your home’s existing equity. It’s different in its flexibility. A HELOC allows you to borrow and repay only what you need, rather than the full equity amount. Unlike a home equity loan, some HELOCs let you make interest-only payments during a short period. Also known as a second mortgage, this financial option isn’t ideal for those who have little equity in their homes or are looking for a collateral-free way to finance their projects.

Home Equity Line of Credit

A cash-out refinance is a completely different type of financing. Rather than an addition, it replaces your existing mortgage. A refi can be a longer and more complicated process as it’s essentially applying for a brand new mortgage. So that means you’ll have to resubmit your financial records, tax returns, and other documents. A refinance can also be costly, with closing costs to pay lender and escrow fees. Considering a cash-out refi is only a smart financial decision when the mortgage rates are low and you have some equity in your home to work with.

Budgeting for a Kitchen Remodel

Before deciding on which type of financing to pursue, creating a realistic budget will ensure you only borrow what you need. Determining a proper budget will come down to several factors:

  • How much can you afford to pay monthly?
  • How long do you want to pay off the project?
  • Will the improvements increase the value of your home?

When considering your budget, it’s also a good idea to factor in a 20% overage to account for unexpected expenses and unforeseen issues that inevitably arise in a home improvement project.

How to Cut Kitchen Renovation Costs

Remodeling a kitchen may have a good return, but it also is one of the most expensive renovation projects. After you’ve determined your budget and goals, consider some of the ways you can cut costs and save money overall.

Do It Yourself

If you’re handy, an easy way to save money is by doing some of the work yourself. Some common projects that homeowners tackle on their own are painting, flooring, installing new outlets or fixtures, new drywall, baseboards, and more. Save even more money by wholesale or from the sale racks

Repaint Cabinets

Replacing cabinetry and other woodworking can be costly. Instead, consider refreshing your cabinets and kitchen overall with a fresh coat or two of paint. If your wood is in bad condition, you can add a new veneer to the doors of your cabinets to give a new look without the full rip-out and replacement cost. The most affordable way to update your kitchen cabinets is with brand new hardware. Updated pulls will give a modern look without the expense.

Repair Appliances

Buying all new appliances may be tempting, but they are expensive and don’t add much value to your home. With access to online tutorials, user manuals, and ready-to-order parts, it’s easier than ever to repair your appliances yourself. So rather than tossing your refrigerator or dishwasher in the landfill, spend a little bit of time getting it back into action.

Kitchen Remodel Loans with AmeriFirst

When you’re ready to obtain funding to remodel your kitchen, there are many reasons why AmeriFirst Finance is the best choice

Loan Amounts from $5K – $80K

Whether you want to repaint your cabinets or scrap your whole kitchen and start from scratch, a personal loan will help cover the cost. With loan amounts from $5,000-$80,000, AmeriFirst can help you finance your project no matter how big or small.

Fixed Rates & Flexible Terms

All of AmeriFirst’s personal loans come with fixed interest rates and flexible terms to ensure you can find financing that fits your situation. Based on your credit score, you’ll find competitive interest rates that make your monthly payments affordable and within reach.

Apply in Minutes

At AmeriFirst, the application process is easy, fast, and painless. Answer a few simple questions about your credit history and you’ll be forwarded to the application, which is all online and can be accessed from anywhere.

Easy Online Payments

Consistent with the application process, once you’ve been approved for a loan, you’ll be able to make your monthly payments easily and securely on the AmeriFirst online portal.

How Do I Finance a Kitchen Remodel?

When you’re ready to spruce up your kitchen, either with a minor upgrade or with a full-scale renovation, financing will make your dream kitchen a possibility. Obtaining a kitchen remodel loan with AmeriFirst only takes a few minutes and can be done 100% online from the comfort of your home. Don’t wait another minute to get started on your project, explore competitive rates, and start the seamless application process now.