Kitchen remodel financing

Get personalized rates in 60 seconds without affecting your credit score.

$

Redirecting you...

Oops! Something went wrong while submitting the form.

Comparing rates won't affect your credit score

No home equity needed

No obligation to get a loan

  • Checking your rates won't affect your credit score
  • No home quity needed
  • No obligation to get a loan

How to find the right kitchen remodel financing option

Whether you’re looking to redo your kitchen cabinets with financing, borrow for upgraded kitchen appliances, or finance a new kitchen, it’s important to pick the right option.

Picking the right kitchen financing option gives you several benefits:

  • Savings on your project: Kitchen loans can have major differences in interest and fees. Picking the right option could save you thousands of dollars.
  • Manageable monthly payments for your kitchen: It’s important to pick a financing option that won’t blow a hole in your monthly budget.
  • No one-time hit to your bank account: You may have the income to responsibly finance your kitchen renovation, but want to avoid a large one-time hit to your bank account. Financing can help you spread out your kitchen’s costs, but you’ll have to pay interest and fees.

In this article, we’ll show you how to finance a kitchen remodel and save money in the process. We’ll also tell you about the options we offer. Finally, we’ll also explain when it may be best to wait and save up the cash.

Here's what you need to know about financing a roofing project

When considering whether to finance your kitchen or wait to save cash, you should consider two factors: your timeline and existing debt obligations.

Let’s take a look at each.

How urgent is your kitchen project?

Perhaps you want a new countertop. Or maybe you think it’s time to redo your cabinets. Projects like these tend to not be urgent, and we recommend waiting to save cash. You’ll avoid interest, fees, and a mark on your credit report.

Of course, you may have more urgent reasons to upgrade or replace your kitchen. Maybe it’s unusable and needs a repair. You could be planning to sell your home soon, and think new granite countertops would help your home close faster.

It's best to finance your kitchen if you don't have time to save cash.

What is your existing debt?

To the extent possible, you’ll want to avoid falling into too much debt. Look at your existing debt–including your mortgage–and think through whether you can afford to tack on another monthly payment for your kitchen.

Kitchen loans

If you’re planning a big kitchen remodel, you’ll want to consider a loan as your kitchen remodel financing option. These projects cost between $20,000 and $60,000–a perfect price range for a kitchen loan.

Before discussing different types of kitchen remodel loans, let’s take a look at key terms you should know when evaluating loans:

  • Annual Percentage Rate (APR): APRs are the annualized cost of your loan. This rate includes both interest and fees–and is the most accurate representation of what you’ll pay.
  • Term: Term refers to the period of time you’ll be repayment a kitchen loan–typically in fixed intervals.
  • Prepayment penalties: Some lenders make you pay a fee if you pay back the loan ahead of schedule.
  • Closing costs and origination fees: Many kitchen loans have fees that you pay when you get a loan.
  • Monthly payment: This refers to the amount you’ll pay each month. This may change if you have a loan with a variable interest rate.

Knowing these definitions will help you assess your kitchen loan options.

Personal loans for kitchens

Personal loans have fixed monthly payments, average terms of 3-7 years, and no home equity requirement. Most personal loan providers offer up to $35,000, although you can get more if you have excellent credit. You may be able to get a personal loan with a credit score above 500, but your odds are higher if your credit score is above 640.

Personal loans are best for urgent kitchen remodels. You can get funded as soon as 24 hours after you apply. You’ll just have to submit income verification such as a W-2 to your lending provider. These loans also have no prepayment penalties.

Hearth can find you personal loans on your project. After you complete our 60 second loan request, we’ll show you rates without affecting your credit score. By comparing rates from multiple lending providers, you can find savings on your project–we find over a thousand dollars in savings for many homeowners. When you find an option you like, you’ll be able to continue your application and get a final decision from the lending partner.

Because personal loans are not secured by your home equity, you’ll pay higher rates than you would on a secured option. Personal loan interest is also not tax deductible.

Home equity loans for your kitchen

You may also want to consider a home equity loan, which let you borrow more than a personal loan. Home equity loans use your home equity as collateral, so there’s typically a longer application process than you’d find on an unsecured option. On the other hand, home equity loans have lower rates than unsecured options and the interest is tax deductible. It usually takes 4-6 weeks to get a home equity loan.

Home equity loans also have high closing costs and prepayment penalties.

You can learn more about home improvement loans by reading our complete guide.

Kitchen renovation lines of credit

In contrast to a loan, lines of credit let you borrow as needed up to a predefined limit. In this section, we’ll look at two common types: credit cards and home equity lines of credit.

Credit cards for kitchen remodels

Hearth offers two types of credit cards as a kitchen remodel financing option: no-interest credit cards and cards for those bad credit.

Finance your kitchen with an interest-free card If you have decent credit, you may qualify for a 0% APR credit card. You could use this card to finance your kitchen project without paying any interest. These cards usually have an interest-free 6-18 month introductory period before interest kicks in. It’s important to pay back these cards before this period ends to avoid interest.

These cards are best for smaller kitchen remodels, as you risk not being able to pay off larger projects before you owe double-digit interest.

Finance a kitchen with bad credit Even if your credit isn’t great, you can finance your kitchen remodel with a credit card for bad credit. However, because these cards have high rates, we recommend improving your credit score or saving cash if you can. Be sure you develop a plan to pay off the card as quickly as possible if you need a card.

Kitchen cabinet financing

Cabinet projects can cost anywhere from a couple hundred to several thousand dollars. For example, you’ll pay between $2,000 and $6,000 for wooden cabinets, and over $9,000 for a custom project with high-quality wood.

You can use any of the options we’ve discussed to finance your cabinet. Hearth helps you find personal loan options that can help you finance your cabinets quickly.

Saving on your kitchen

Looking at several different kitchen financing options helps you unlock savings for your project. Use Hearth to compare rates and find savings from several lending partners without affecting your credit score.

Ready to start your kitchen remodel?

Compare kitchen remodel financing options without affecting your credit score.

Compare personal loan rates

* All loan information is presented without warranty, and estimated APR and other terms are not binding. Hearth’s lending partners generally present a range of APRs (for instance, from 5% to 35.99%) with a range of terms and monthly payments. As an example, a $10,000 loan with an APR of 14.50% and a term of 36 months would have a monthly payment of $344.21. Actual APRs will depend on factors like credit score, loan amount, loan term, and credit history. Only borrowers with excellent credit will qualify for the lowest APRs. All loans are subject to credit review and approval.
Hearth is a technology company, which is licensed as a broker as may be required by state law. NMLS ID# 1628533 |NMLS Consumer Access. Hearth does not accept applications for credit, does not make loans, and does not make credit decisions; this site does not constitute an offer or solicitation to lend. All insurance services are provided by Hearth Home Insurance Solutions, Inc. Hearth may be compensated by third-party advertisers.

© 2016–2019 Shogun Enterprises Inc.  Hearth® is a registered trademark of Shogun Enterprises Inc. All Rights Reserved.