You have decided to go for a kitchen remodel.
This decision could have plenty of reasons behind it. Perhaps, you notice the wall paint coming off. Or, maybe the appliances are obsolete. Regardless of the reasons, it is essential to plan your kitchen remodel well in advance. Often, homeowners go over-the-top during the remodeling and invest (or overinvest) in a lot of luxurious features, which is not always a bad thing as long as it is affordable. However, most of us are on a tight budget. Which is why we need to plan our finances smartly. Don’t you agree? The search for financing plans can be cumbersome, but we at CustomFin are here to assist you in the endeavor with 5 great ways to finance a kitchen remodel:
1. Using A Home Equity Loan
This option involves using your home as collateral. The primary benefit of this financing option is that it can be easily procured and at minimal interest rates. However, the drawback is the risk of losing your home in case of a failure to make payments. Upon placing your home as collateral, you receive the entire loan amount in advance. You have to pay off this sum over a period. Home equity loans are available at constant interest rates – making them quite desirable, especially if the fixed rate is low.
2. Using A Home Equity Line Of Credit
This is similar to a credit card, but one where you have to use your home as security. The limit of credit provided will be based on a certain percentage of your house value. The line of credit will also depend upon the borrowers’ credit scores – the higher the credit score, the greater the home percentage of the line of credit. Similar to a home equity loan, a failure to make payments can cause you to lose your home.
3. Using Contractor Financing
Customized financing packages are offered by contractors specializing in kitchen remodeling. A slippery slope is the absence of options to compare the contractor’s terms and rates against. If you consider this option, make sure to scan the offered rates and compare them against those of the contractor’s competitors.
4. Taking A Personal Loan
This is a particularly good choice for families that have insufficient home equity. Since personal loans are not secured, you do not need to offer your home as security. The procurement process is straightforward, and, once complete, the amount instantly shows up in your bank account. Further benefits are that the repayments are spread over a long period, and the interest rates are often fixed.
5. Refinancing Personal Loans
Let us say that you went for a personal loan for your kitchen remodel project. After some time, you realize that you are struggling to pay off the installments. In such a situation, you will want to reduce the monthly payment amounts. Enter Refinancing. This will let you collect another personal loan with improved terms and rates. You can then use the new loan to pay off the previous one. A good idea is to find a loan with a reduced Annual Percentage Rate (APR).
To make your kitchen remodel financing easier and understand the vast range of options available, you can turn to Custom Financing Solutions. Equipped with the latest technology, we at CustomFin take you away from costly financing solutions, to an upgraded, user-friendly virtual world of financing. Sign up with CustomFin today to look at financing models customized for you and choose what suits you best with the click of a mouse.
CustomFin makes financing your kitchen remodeling seamless. Sign up with CustomFin today!
