As the home renovation buzz continues into 2022, many Americans are hoping to renovate the heart of the home: the kitchen. Past estimates show that the average kitchen renovation cost $14, 864 in 2021.
The kitchen is also one of the spaces where you are most likely to go over your renovation budget as you try to create your dream kitchen. With this in mind, it is no surprise that financing and saving money on their kitchen remodel is a top concern for most homeowners.
But here’s some good news: there are simple things you can do to make the financial aspect of kitting out your dream kitchen go smoothly and within budget.
Know Your Budget Before Picking Out Countertops And Appliances
Before deciding on whether to choose between the marble or granite kitchen styles, you need to first decide how much you have or are willing to spend on your dream kitchen.
Contrary to what most may think, what you have to spend will have the greatest impact on your choices.
This will also be determined by the amount of renovation financing you can secure if you plan on doing so. If you only have $5,000 to spend on your dream kitchen renovation, it may be time to consider budget kitchen renovation hacks such as DIY cabinets.
If you want the look of granite countertops without the price tag, a choice is engineered stone or laminate.
Plan Your Finances As You Plan Your Kitchen Renovations
If you will be seeking financing to pay for your kitchen renovation, it helps to ensure your finances are in tip-top shape so you can get the best deal.
This includes having a good credit score before applying for refinancing, a kitchen loan, or a line of credit against your home.
A simple boost of 100 points can make a sizable difference in the interest rates and loan offers you qualify for, and the overall cost of your renovation you end up paying.
Take time to explore your different financing options for your kitchen renovation. Each option comes with its pros and cons. Weigh the costs of each financing option. For instance, those choosing to refinance for home improvements will have to account for additional costs like an application fee, origination fee, and home appraisal fee.
You will also need to pay closing costs on your home again. This is typically 2 to 3 percent of the refinance value. If you are unsure of the costs that come with cash-out refinancing, an expert debt consolidation consultation can give you clarity.
Get Comfortable With The Trade-Off Between Renovation Choices
Your choices in a kitchen renovation will determine its final cost. This refers to everything from the countertop material you choose to the kinds of appliances you opt for.
For instance, if you choose an eco-friendly kitchen renovation, be prepared to pay slightly higher prices for sustainable building materials. However, you may be able to combat this by getting recycled kitchen appliances and cabinets.
Planning out your finances for your dream kitchen renovation is important like any other home renovation project.
Taking time to prepare your finances leading up to the renovation, researching your financial options for the renovation, and being clear about the costs attached to the renovation choices you make is a good place to start.