Is Refinancing a Smart Way to Cover the Cost of Your Remodel?

You’ve been dreaming of remodeling your kitchen for years, but one major thing stands in your way. The cost! Even a small kitchen remodel can land you squarely in the five digit price range, and if you want to do a sweeping overhaul, you can easily hit six figures.

Most of us don’t exactly have $100,000 sitting around in our checking accounts, so how are you going to afford your kitchen remodel? You might think about taking out a personal loan, but another option is to refinance your home and use your existing equity to cover the cost of the remodel.

Housing prices throughout Palm Desert and Coachella Valley have risen quickly over the past years, and interest rates are at historic lows. If you’ve built up a lot of equity in your home and your mortgage interest rate is over five percent, you may be able to get a significantly lower interest rate by refinancing today. Not only would you lower your monthly mortgage payments (yippee!), but you can take some of that equity out of your home and put it toward your remodel.

Since a kitchen remodel is sure to increase the value of your home, it’s kind of like you’re putting that equity right back into your home! Of course, you should definitely take your time before deciding to refinance your home. There are fees associated with refinancing, and if you don’t have a strong credit score or enough equity in your home, you could end up with a higher interest rate and no ability to take equity out!

In other words, look before you leap!

If you want one more way to afford your kitchen remodel in Palm Desert and Coachella Valley, contact California Design Wood Products to learn about our 0% financing option.