Most homeowners dream about remodeling their kitchens to make it more functional and beautiful. In some cases, it is even essential, because either the design is outdated, or it has serious structural problems.

The problem is, kitchen remodeling is an expensive proposition, even if you know it will pay for itself over the long term. You have to figure out a way to get the funds you need to complete the project without making too many compromises.
If you are unable or unwilling to wait to save enough money for the kitchen you want, you can consider a home improvement loan. These come with some benefits, such as increasing the value of your home. If you are planning to see your home soon, you definitely want to get a quick loan as soon as possible.

Another benefit is more personal. A kitchen that looks and functions the way you want can make you feel better about yourself and your home. This sense of well-being can carry over to other aspects of your life, helping you improve your career, relationships, and overall existence.
If these seem to be good reasons to you, then you might want to check out some of your options. You will also want to know how to choose the best one for your circumstances.

Credit cards

The easiest option for many people is to use their credit cards to pay for their kitchen remodeling. A credit card is really an on-demand loan facility that does not require collateral. This means that if you do not pay, they have no way of getting their money back. They can give you a poor credit rating, sure, but they typically risk losing the money altogether. This is why credit cards charge a higher interest rate than a regular bank loan with collateral.

However, if you have good credit, chances are you have a credit card that will charge low interest rates for your purchases. Some cards offer rates as low as 2% per month (the usual is 4%) for a cash advance of $10,000, payable over 18 months. You will end up paying about $13,600 total. But, worth the pleasure you feel every time you walk into your dream kitchen.
Of course, you have to pay the loan back according to schedule without fail, or you risk piling on the late and additional charges. You do that, and you should be fine. You should also note that any interest you pay for this type of loan is not deductible in your tax returns.

Personal loan

You can probably do quite with $10,000 if you have a small kitchen. However, if you have a large kitchen or your design requires more in the neighborhood of $30,000, then you might want to look for a personal loan. This is also an unsecured loan (meaning no collateral). But, you get it from banks and credit unions instead of your credit card.

If you have a good credit score, you should have no problem securing a personal loan. However, this will take longer than getting a cash advance from your credit card, and the interest rates are much higher. On the flip side, the lender will give you longer terms. So, you have lower monthly payments over a longer period. You will also not have to pay for closing and other fees.
Make sure you get the best terms by submitting several applications with different lenders. The interest rates will vary greatly, so don?t be shy about negotiating for better rates. Again, the interest is not tax deductible.

Home equity as collateral

If you own your home or have a substantial equity on it, you might be able to use it as your collateral. This is a secured loan, which means if you do not pay your loan, the lender can foreclose on your home.
Because of the lower risk, lenders can offer a higher loan amount payable over a longer period at low interest that is also tax deductible. Your options include a home equity line of credit or HELOC, refinancing, or a second mortgage.
When applying for any of these secured loans, the lender will ask for the purpose of the loan. You will not lose any points by saying you are remodeling your kitchen. Increasing the value of your home will be to their benefit, as your home is the collateral. Telling the lender this will actually help you get the best loan terms.

However, getting secured loan is much more difficult than getting an unsecured one. You have to submit many documents during the application process, and pay closing costs and other fees before you can get the money. This is presuming you actually have enough equity to cover the money you need for your remodel.


Getting a loan to fund kitchen remodeling is not hard. The question is how much you are willing to pay in interest. The suggestions above are just some of the easier ways to get the funds you need.

Before you apply for a loan, however, you should get a quote for your kitchen remodel. Mimosa Kitchen and Bath knows all about kitchen remodeling in the DC metro area, Columbia, Rockville, Bethesda, Jessup, Chevy Chase and surrounding areas. We can provide you with a free itemized quotation for kitchen remodeling at no obligation to purchase to help you with your loan requirements.

Contact us today to get a free quote and design consultation for your kitchen remodeling project!