Countertops and cabinets financing for remodeling your kitchen
Loans are often the best option for financing for remodeling your kitchen cabinets, countertops, flooring, and other permanent fixtures. Each of these projects involves an expensive demolition of the old materials and installation of the new by a licensed contractor.
You often cannot take your updated cabinets, granite countertops, ceramic tile flooring, and stainless steel sinks and faucets with you if you sell the property. Nor can you return them to the manufacturer when you are finished using them.
Therefore, using unsecured personal loans as a method of financing for remodeling your kitchen using the equity in your house as collateral are the two methods most people use to fund this portion of a kitchen renovation project.
Contractor financing for remodeling your kitchen
Many home improvement contractors, such as Woodstone Cabinetry, offer third-party kitchen remodel financing options to help you fund part or all of your project. This is a very convenient option as everything is handled by the contractor and the financing institution. All you have to do is complete a quick application and everything else is handled directly through the contractor.
Usually, contractors will offer a few different financing options depending on your credit history and amount you need to borrow. These can range from 0% APR loans that you repay the entire loan amount over a set number of months with equal payments each month. Woodstone Cabinetry, for example, is offering “6 Month No Interest Financing” for kitchen remodeling. Customers can apply for a remodeling credit card and buy kitchen cabinets and pay them off over the next 6 months with no interest
Home-equity loan financing for remodeling your kitchen
You can get an Atlanta Cabinet Company that offers the tax benefits of financing for remodeling your kitchen without the closing costs. You get the entire loan up front and pay it off over 15 to 30 years. And because the interest usually is fixed, monthly payments are easy to budget. The drawback: Rates tend to be slightly higher than those for conventional mortgages.
Low to no Interest Credit Card financing for remodeling your kitchen
If you have good credit, you probably get low interest credit card offers on Discount kitchen cabinets in Atlanta all the time. They might be in the form of a new card or checks you can write against cards you already have. It’s not uncommon to qualify for $10,000 of unsecured credit for 18 months at 3.99%. That’s a perfect amount for a small kitchen refresh like new countertops, floors, and lighting.
You really can’t beat that, as long as you pay it back according to the terms. Just be warned, if you go past the agreed upon repayment period you may end up owing a lot of interest and this option will not have been fiscally responsible.
Home equity line of credit (HELOC) financing for remodeling your kitchen
The most common and cost effective way to finance a kitchen remodel is to obtain a Home Equity Line of Credit (HELOC. A HELOC is similar to a credit card. It’s a revolving line of credit and your home is used to secure the loan. Instead of receiving a lump sum like a home equity loan on Norcross kitchen cabinets, a HELOC gives you a line of credit that you can tap into overtime. Tapping into the equity in your home offers you the flexibility to move funds in and out of the credit line as needed. You only pay interest on the amount of money you borrow.
But to qualify for a HELOC, you’ll need good credit. You’ll also need enough equity in your home. Most HELOC lenders require a combined loan-to-value (LTV) ratio of 70% or lower to qualify for a HELOC. The LTV ratio is your current mortgage amount owed divided by the appraised value of your home.
Ultimately, it’s your decision to decide which financing for remodeling your kitchen option works best for your particular situation. Weighing the options to figure out what you qualify for, which option is best for you to acquire RTA Kitchen Cabinets in Atlanta, how much you should request your loan to cover, and how much money you can contribute to the overall project in cash are all things you should spend some time mapping out so that you make the best financial decision for your family.