If you want to borrow a larger amount of money to fund your kitchen remodel, a home equity loan is a great choice. You'll receive a lump sum to spend with a fixed interest rate, repayment timeline, and monthly payment. However, it's a secured loan that uses your home as collateral.
Is $30,000 enough for a kitchen remodel?
The National Kitchen and Bath Association recommends spending no more than 10%–15% of your home's total value on a kitchen renovation. This amounts to no more than $30,000–$45,000 for a $300,000 home.
How do you pay for a new kitchen?
- Personal loan. If you don't want to use your savings and a credit card isn't the option for you, another way to pay for a new kitchen is to take out a personal home improvement loan.
- Interest free credit.
- Buy now, pay later.
- Pay monthly kitchen finance.
What is the biggest expense in a kitchen remodel?
How much is too much to spend on a kitchen remodel?
Investing more than 15 percent of your home's value, however, could put you at risk for losing money when you sell your home. Obviously, there are exceptions to every rule, but when you're trying to set a budget for your kitchen remodel, the 5 to 15 percent rule is a good place to start.
How much should you spend on a kitchen renovation?
Kitchen renovations will cost anything from $15,000 to $45,000 or more. Prices vary based on individual preference such as the quality of materials, fixtures and furniture used. It's easy to overspend on a kitchen renovation without a simple budget plan, which can lead to higher costs than you expected.
How do people pay for a new kitchen?
Using your savings to pay for a new kitchen will depend on the overall cost of the kitchen and how much you have saved. If you do have enough in your savings, you can pay for each stage of the kitchen refurbishment outright without needing to use credit or take out a loan, so you won't owe anything once it's completed.
Frequently Asked Questions
How much does it cost to remodel a 10x10 kitchen?
From $15,000 to $45,000
Generally, a 10×10 kitchen remodel ranges from $15,000 to $45,000, but several factors could cause variations in the cost. A 10×10 kitchen, commonly considered the standard size for modern kitchens, plays a pivotal role in determining the cost of kitchen remodeling.
How do you pay for a kitchen?
Depending on the finance agreement, you can spread the cost over 12, 24, 36, 48 or in some cases up to as much as 60 to 96 months. Through these plans, you can pay for the cost of your kitchen in monthly instalments with a fixed APR (interest rate).
Are kitchen remodels a good investment?
For example, the national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000. What about a smaller renovation project? The average cost of a minor kitchen remodel is about $21,000, and the average amount recouped is $17,000.