Americans and people worldwide take pride in their homes, which is why homeowners are expected to spend an extra 7.5% compared to last year on home renovations, according to Harvard’s Joint Center for Housing Studies.
Kitchen remodels rank highly in the list of renovations property owners seek. Homeowners who have put together new kitchen finance plans and secure the funds to complete the work, can expect to see a return in value on their property of 59.0%.
But with Forbes reporting that 30% of individuals budget between $25,001 and $50,000 for their remodel, a new kitchen doesn’t come cheap. New kitchen cabinets, counter tops, flooring and appliances can make remodeling costs soar.
Home repair grants for a new kitchen are one option to help cover the cost, and fortunately, other options are available too.
Equity Release for a Kitchen Finance
Black Knight Inc. has revealed that Americans have $5.4 trillion of tappable equity, meaning millions can reach out to their mortgage provider or similar institution in order to release funds from their homes.
For those aged 62 and above, a reverse mortgage is the ideal way to get hold of some immediate cash. In return for taking out a home equity loan, you’ll either receive a lump sum of cash to spend on your new kitchen or regular monthly payments to splurge on your refit as and when you please.
Borrow the Cash
For those who have little or no equity in their home or who don’t wish to use the cash tied up in their property, a traditional loan should be considered.
Before applying for a loan, ensure you add up the total cost of your new kitchen so you can be sure you get your hands on enough cash to complete your plans.
To avoid the interest on such a high figure, consider asking friends and family whether you could borrow some funds from them. By doing this, you should be able to agree to some more friendly terms such as a lower interest rate.
With the average kitchen remodel coming in at $20,556, it’s unlikely that you’ll have the cash sitting in your bank account ready to pay for and finance your new kitchen right away.
However, just because you want a new kitchen, it doesn’t mean you have to have it right away. Instead, make do and fix up what you’ve got while you save up for what you really want.
Sit down and review your finances to determine how much you can afford to put away each month towards your dream kitchen.
From here you can look at ways to make cutbacks on your day to day living costs and expenditure, such as switching to a cheaper cell plan and opting for cheaper brands when you shop for groceries.
The cost of a new kitchen can be as much as tens of thousands of dollars. Therefore, financing your remodel in a way that works best for you is a must.
Kitchen finance options include releasing equity from your existing property, borrowing the cash from reputable lenders or loved ones or holding out and saving the cash yourself.