A big hidden cost in kitchen remodeling is financing cost. Thus, proper planning of any kitchen renovation project must consider financing. For example, a brand new marble kitchen flooring costing $5,000 will set you back another extra 15% (or $750) per year in interest charges if you don’t fund the kitchen improvement project properly. And, even if you paid the entire $5,000 in cash, you are still accumulating opportunity costs for funding the kitchen improvement project upfront. For example, you could be earning 5% in interest (or $250) on the $5,000 by putting the money in a high yield CD, instead of on the kitchen improvement project.
So, how can we have it both ways? How can we get the kitchen improvement that we wanted and earn interest on our money at the same time? The answer is in — interest-free financing offers — either from the home improvement dealers (e.g., Sears, Home Depot, etc.) or credit card companies (e.g., Capital One, Chase, Bank of America MBNA, etc.). Fund the project by using interest-free money from the home improvement dealers and credit card companies, and put the money that has been saved for the kitchen improvement into interest-earning money vehicles, such as savings account and CDs, during the interest-free grace period. Be sure to pay off the loan after the grace period. You will be able to knock off another 5% or more on the kitchen improvement project. Some credit cards even give you cash back for your spending (up to 5% depending on specific offers), which gives you even more savings.
Kitchen remodeling experts have suggested the best financing options for kitchen upgrades.
For standalone kitchen upgrades on kitchen appliances, flooring, cabinets, and other kitchen improvements, including installation, that are below $1000, the best option is interest-free offers or no initial payment offers from local home improvement dealers, such as Sears, Best Buy, Home Depot, and Costco.
For larger kitchen improvements up to $5000, credit cards with 0% or low introductory APR offer the best deal.
Of course, finding a reliable professional kitchen remodeling contractor probably provides the most savings, both in terms of time and money. Comparison shopping for the best free quote also helps. But, if you finance your kitchen remodeling project smartly, you will be able to save even more on kitchen improvements!
Wade Henderson – recognized Professional – 15 yrs in the Business Finance Field – strong reputation for getting the deal done. IMMFinancial.com development financing project investment capital financing business financing project investment private financing project infrastructure bank financing public financing project funding
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