Categories: home improvement

How to Finance Your Kitchen Addition

A successful kitchen remodel requires a good design, quality products and a professional team. Apart from these things, your budget also influences the results of your project. 

In this post, we discuss the different ways to finance your kitchen addition.

Home Equity Loans or Lines of Credit

Homeowners earn equity through continuous mortgage payments. They can leverage their equity using a home equity line of credit (HELOC) or home equity loan (HELOAN). 

A HELOC provides a line of credit borrowed against your available home equity. Alternatively, HELOAN is a fixed-interest loan also borrowed from the same source. Keep in mind that a HELOC/HELOAN uses your home as collateral.

Mortgage Refinancing

Mortgage refinancing, also known as cash-out refinance, lets you use a new mortgage with excess cash for your remodeling project. Refinancing is ideal if it has a lower interest rate than your existing mortgage.

Home Improvement Loan

If you don’t want to borrow using equity, home improvement loans are a good alternative to HELOCs or HELOANs. This unsecured fixed-interest loan provides a specific amount based on your credit score and typically has a five-year loan repayment period. 

Credit Cards

Credit cards with high limits can handle the total cost of a kitchen addition. You can get renovation financing with zero-interest installment credit cards. Plus, some store-issued cards from home renovation suppliers offer rebates for product purchases.

Cash

Paying in cash means you don’t need to worry about interest charges and repayment schemes. It takes time to save, but it leaves you debt-free if time is on your side.

If you want affordable, high-quality home additions, turn to the expert designer-builders at Cottage Industries, Inc. Our decades of working with homeowners have earned us a reputation for building top-notch kitchens. Call us at (610) 293-9750, or fill out this contact form to schedule a consultation.

Adam Sherman

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