How to Finance a Kitchen Remodel | The Ascent

Finding the best personal loan

If you choose to get a personal lend, you ‘ll probably pay a lower concern rate than you would if you paid with a credit card. To make surely you get a good personal lend matter to rate, compare respective lenders. Some lenders allow you to choose between a secured or unbarred loan. A guarantee loan means putting up something of value — like stocks, ticket art, or a retirement account — as collateral. If your credit seduce is low, you might find it easier to get approved for a secure loan. But be careful : If you fail to make the payments as agree, the lender has the veracious to take possession of the collateral and sell it. besides ask lenders about their other fees. For model, some charge a prepayment penalty. Do n’t fair pick the inaugural lender you find. Shopping around will help make sure you find the best personal loanword for you .

2. Credit cards

If you ‘re planning a smaller recast, and can pay back the money promptly, you might want to pay for your kitchen recast with citation cards. A credit card with a 0 % promotional rate is a capital way to borrow money without paying pastime — a hanker as you can pay off the circuit board before the higher interest rate kicks in ( you ‘ll broadly have a little over a year to pay off the batting order ). If you go this road, plan to make more than just the minimum monthly requital for the card.

3. Cash-out refinance

If you have enough equity in your sign of the zodiac, a cash-out refinance is another room to pay for kitchen recast. A cash-out refinance works like this : Say you presently owe $ 200,000 on your mortgage, and you set a $ 40,000 budget for your recast project. You could refinance to a $ 240,000 mortgage ( sum you owe plus the money for your base improvements ). then, you ‘d get that $ 40,000 as cash to pay for your kitchen remodel.


A home fairness telephone line of credit ( HELOC ) besides allows you to use the equity in your lend. As a homeowner, you can apply to borrow a little at a time from your mortgage lender, improving to the amount the lender approves. Once you pay a share of the loanword back, you are free to borrow it again — like to a credit menu. This is besides known as a second mortgage.

5. Home equity loan

With a home equity loan, and you put your family up as collateral. You ‘ll get the funds for your home improvement project in a lump total, then pay the loan back monthly .

6. Federal programs

A final option for financing home plate improvements involves government loans. The section 203 ( potassium ) plan is offered through the U.S. Department of Housing and Urban Development ( HUD ). It allows you to take out a fresh mortgage or refinance your current one and roll the cost of home renovations into the loanword. There are limits on what the funds can be used for, but they tend to cover things like bath and kitchen renovations. Knowing how to finance a kitchen remodel can help you create your dream kitchen. Before you get started, work your budget, decide how much you can afford, and go into your kitchen renovation project with a clear fiscal plan .

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