How do I make my dream worthy kitchen remodel in my mind come true? This is perhaps a question that is asked by a majority of homeowners. It is indeed a dream come true if you can have your dream kitchen. Although having this dream come true is nice, it is not an easy task to accomplish. As you’re saving for the remodel of your kitchen, Tax Day Tea Party says that you should also keep in mind how kitchen remodels are typically the most expensive types of renovations. This article will go over ways to not break the bank with some kitchen remodel loans you could use.
Kitchen Remodel Loans
Using a Home Equity Loan
An equity loan works in the same manner as a mortgage loan; but in this case, you will basically borrow equity in your home in exchange for a lump sum of money. Just like any other loan, you will make regular and fixed monthly payments for the period in your agreement. The advantages of the home equity loan are: that it has a lower interest rate compared to a personal loan rate, the interest is flexible and is tax deductible, the payment amount does not increase and that the amount remains constant. On the downside, you will need to use your home as collateral and you are more likely to overspend and fall into debt.
An alternative to home equity loans is a home equity line of credit which involves using your credit card to obtain small amounts of money over a particular period. You can even borrow against your credit for a period of even ten years.
In financing your kitchen remodeling, you can choose to use contractor financing which usually comes in different packages. The loan rates always vary, and you should, therefore, carry out your research well before starting thinking of using a contractor. The
only advantage with dealing with a contractor is that the contractor carries out everything but the contracting company may not put your best interest at heart as they aim to make profits and only work with what is contracted.
Remodeling With a Personal Loan
Using a personal loan is also another great way to finance your kitchen remodeling because you do not have to use any of your home property as collateral. You only need to apply for the loan and get approval after which you will be able to access the money. Your loan depends on your credit card score; is the lower the interests that you will pay. The advantage of this process is that it will be easy to apply and that the funding will reflect in your account within the shortest time possible.
In managing your kitchen remodeling costs, you need to consider all the possible options that you have to finance the project. This article outlined 3 ways you can take the next steps towards attaining your dream kitchen through kitchen remodel loans. Good luck!