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.
Savings on your projects
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.
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.
Terms
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
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.
