90% of property owners in the U.S. want to remodel their homes, according to Truila. One of the most popular rooms of the home to renovate is the kitchen. However, U.S. News reports that it costs $25,291 to do up the heart of the home. With this large expense to consider, it’s crucial you have access to all the funds needed to complete the job so you don’t have to halt work halfway through your project.
Sell your old kitchen
New kitchen cabinets will take up 29% of your remodel budget, while countertops will take up another 10%. Rather than gutting and dumping your existing kitchen, it’s worth selling it on to help raise some funds for your kitchen remodel. Online marketplaces are a good place to advertise your old kitchen. How much you’ll get will depend on your old kitchen’s condition, how many cabinets you’ve got, and whether you or your buyer will dismantle your old kitchen before collection.
Refinance your home
A high-end kitchen remodel will set you back around $60,000. If you’re looking to really splash out on your new food prep and storage space, you may want to think about a refinance home loan. This is where your existing home loan is replaced with a new one with more attractive benefits. Often, you’ll gain from a lower monthly interest rate. This will help you create the kitchen of your dreams as you’ll pay less to your home loan company every month.
Get a credit card
The average American has 2.7 credit cards, according to Debt.org. Credit cards are a popular way for homeowners to pay for costly house renovations with almost one-third of consumers confessing to using one. But, it’s best to be savvy with the way you use your credit card to fund your new kitchen. Ideally, use your savings to pay for the bulk of your remodel and utilize your credit card for smaller purchases to complete your kitchen, such as a new splashback or a smart lighting system. It’s wise to get a credit card which offers 0% interest for as long as possible – ideally 18 months minimum so you have plenty of time to pay back what you owe.
Release equity
The average homeowner has approximately $200,000 of equity in their home. If you’re desperate to upgrade your kitchen, releasing some of this equity may be worthwhile. A home equity loan will provide you with a lump sum of cash so you can get stuck in with your kitchen remodel straight away. An alternative option is a Home Equity Line of Credit. In some cases these can be interest free so long as you use all the cash to complete your kitchen upgrade.
A kitchen remodel will really make your home stand out from the crowd. But, it can be a costly project to tackle. Thankfully, these finance options will ensure you cover the expense of your kitchen remodel, no matter how big or small it is.