A recent Home Depot survey says 32% of American homeowners remodel the kitchen first. And 62% say that the most important factor for that remodel is cost. Find out how to get kitchen remodel financing and stay on budget.
Do you feel like your kitchen could use a refresh? Do you visit your friends or neighbors and find yourself jealous of their home projects? You’re not alone. Home Depot says over half of Americans have tried to one-up their neighbors with a home project.
Nobody wants visitors laughing at the outdated designs of their home. As they walk all over you like they stride across their fancy slate flooring. But even once you’ve scraped up the money to make improvements, how can you keep from being taken advantage of?
Set Your Objectives
Take some time to write down the objectives of your project. Be realistic. Don’t set goals that are too aggressive, like speed to complete or a very low budget. You may find yourself hemorrhaging cash once you give up on that budget or get behind schedule.
Make a Detailed Budget
Don’t just come up with an estimated cost. Establish your exact expense budget. And give yourself a cushion for unexpected expenses. Research the price for everything from the demolition company to the appliance installer.
A realistic renovation budget of 5% of your home’s purchase price is a common rule. If you just have a round number, it’s easy to add some of this and some of that. And you’ll blow your budget before the new cabinets are even built.
Research Kitchen Remodel Financing Options
Most experts will say to start by saving first. And paying with cash or checks has its perks. Some contractors often offer cash discounts. But not everyone has the savings or wants to use their savings to make improvements. You might need to borrow some money. Just remember that now you’re paying for the renovation plus interest.
Use Home Equity
Home equity lines of credit will let you pay for expenses as they come up throughout the project. You extract some cash from the equity for your new kitchen. Even though you now owe more, the idea is that your home will be work more after the renovation. And the interest is usually tax-deductible!
Get a Traditional Bank Loan
If you don’t want to borrow money against your home, consider taking out a traditional bank loan. You can put something up as collateral or opt for an unsecured loan. Don’t hand all of your money from a loan over to a contractor though. Pay in installments. They’ll have more of incentive to finish your job on time.
Apply for a Credit Card
It might make sense to seek out a credit card promotion. If you know that you’ll pay off the loan within the promo period, some cards offer 0% interest APR or cash back rewards.
Store cards often offer some great options for kitchen remodel financing. But don’t go beyond their promo terms or you’ll probably pay a steep price. Often you’ll pay high interest rates all the way back to the purchase date.
Pick Projects That Produce Profits
It’s a good idea to discuss your renovations with a home appraiser. The appraiser can predict what purchases will add value to your property. You want a great-looking kitchen, but you also want to increase the value of your property. It’s not rare to have renovations result in a return of 10% or more.
Start Your Kitchen Remodel
Don’t spend another day wondering what your new kitchen could look like. Be the one who’s making others jealous of your home renovations. And do it without wasting time or bleeding your bank accounts.
Call the Direct Movement Group today to find out how a kitchen remodel can help make your house your dream home. We’ll help with it all, from kitchen remodel financing to picking modern design trends you’ll love.