How To Finance A Kitchen Remodel
A kitchen remodel can completely revamp your home, but it can be costly. Fortunately, there are several ways to finance any kitchen remodeling project.
How Much Does A Kitchen Remodel Cost?
A kitchen remodel in the state of Arizona costs an average of $25,348. Prices will range from $13,291-$37,607, according to Homeadvisor. Let’s take a look at all the factors below that can impact the overall cost of your remodeling project.
Here are some average costs of a kitchen remodel based on size:
- Small-sized kitchen (less than 70 square feet): $5,000-$20,000.
- Medium-sized kitchen (100-150 square feet): $15,000-$40,000.
- Large-sized kitchen (200 square feet): $30,000-$60,000.
Size of the kitchen is undoubtedly one of the top factors in determining overall cost of a project. Smaller kitchen projects can cost as little as $5,000, while larger ones can come with a price tag of $60,000-plus.
How can homeowners save money during this process? Well, the experts suggest starting with a lower budget, featuring some wiggle room. Are there parts of this project that you can handle as a DIY task? Try to keep your remodel green by installing environmentally-friendly faucets and LED lighting. These features will save you money in the long run. Smaller appliances can represent the best of both worlds: saving space in your kitchen and good for the environment.
As stated above, here are the typical costs of a kitchen remodel in Arizona:
- Lowest Cost: $13,291.
- Average Cost: $25,438.
- Highest Cost: $37,607.
What Are The Best Ways To Finance A Kitchen Remodel?
The financing option(s) you choose should be based on how extensive the kitchen remodel will be. For instance, if you are simply painting or adding a backsplash, you may opt to put the expenses on your credit card. If your entire kitchen is being renovated, though, you may want to look into one of the financing options listed below.
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Personal Loans
Personal loans are fast, easy ways to take out any sort of home improvement loan. Personal loan amounts can range all the way from $1,000 to $50,000+. The majority of lenders will offer plenty of time to pay back the loan. When you choose a personal loan, you will likely pay a lower interest rate than you would pay with a credit card.
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Home Equity Loan
A home equity loan requires you to put your house up as collateral. Typically, you will get the funds for your project in a lump sum, eventually paying it back monthly.
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Credit Cards
If you can pay back the money quickly for a smaller remodel, it’s best to use a credit card. If you choose to finance the project with a credit card, just make sure to make more than the minimum monthly payment for your card.
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HELOC
A home equity line of credit (HELOC) allows you to use the equity in your loan. Homeowners can borrow a small amount of money at a time from their mortgage lender, up to the approved amount. You are free to borrow again once you’ve paid a portion of the loan back.
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Federal Programs
The Section 203(k) program is offered by the U.S. Department of Housing and Urban Development. This program allows homeowners to take out a new mortgage or refinance their current one, rolling the cost of the renovations into the loan. There are limits on what these funds can be used for, but kitchen and bathroom renovations are usually covered.
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Cash-Out Refinance
Cash-out refinance is one last way to pay for a remodeling project. To learn more about how a cash-out refinance works, click here.
Urban Customs Kitchen Remodeling In Phoenix, Arizona
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