How To Pay For a New Kitchen or Bathroom

Q. How can I possibly pay for a new kitchen or bathroom?

A. Without a doubt, a kitchen renovation or bathroom makeover will cost you some money. They are typically the most costly rooms to transform, yet they tend to be the most rewarding both personally and for the value of your home. So, how can you possibly plan to pay for this?

Save your money

The most important thing is to save! One of the best options is to pay in cash rather than mounting additional credit charges. This will help you set up a clear budget and planning schedule to know how much you need to pay and when.

Home Improvement Loan

If you want to get a home improvement loan, it is not as difficult as you may think. These loans are designed for homeowners who are looking for home repairs, remodeling and improvements.

Home Equity Line of Credit

HELOC — Home Equity Line of Credit is similar to opening a credit card, which can be used to pay for your kitchen or bathroom renovation. You can borrow money up to a certain percentage of your home’s total value, and then have the option to repay later.

Second Mortgage

You can free up some extra money to use in your kitchen or bathroom project by taking out a second mortgage. As a homeowner you can take out a second mortgage with shorter terms but with a higher interest. This would help in a situation where your bathroom or kitchen renovations are of high priority.


  • A new kitchen or bathroom will increase the total value of your home, and will be a benefit if you are ever planning to sell your home.
  • Now it is possible to purchase energy star approved appliances for your kitchen with tax credits, discount coupons and government rebates.
  • Consider a few minor improvements like cabinet re-facing, countertop replacement, replacing hardware or changing the light fixtures. These few minor improvements will hugely impact the overall appearance of your kitchen or bathroom. Once your financial situation becomes flexible, you can then expand these projects into full transformations.


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