Pick your scope
Kitchen projects range widely. A refresh might mean paint, new hardware, lighting and a backsplash. A mid-range remodel adds new counters, cabinet fronts or appliances. A full remodel can move walls, plumbing and wiring. Moving the sink, stove or walls usually adds the most cost, so decide early what stays put.
Write down your must-haves and nice-to-haves before you call contractors. A clear list makes bids easier to compare and helps you trim the scope if the numbers come in high.
Where the money goes
- Cabinets, often the largest single cost
- Countertops and backsplash
- Appliances
- Plumbing, electrical and lighting
- Flooring and finishes
- Labor, design fees, permits and disposal
Build a budget that holds up
Get two or three detailed bids for the same plan, with materials and allowances spelled out. Add 10% to 20% for surprises. Older homes can hide water damage, outdated wiring or uneven floors that only show up once cabinets come out.
Include permits for electrical and plumbing work, and plan for eating out or setting up a temporary kitchen while work is underway.
How to borrow
A kitchen remodel usually has a defined budget, which suits a home equity loan. You get a lump sum at a fixed rate with a set payment, and your first mortgage stays as is. If your current mortgage rate is close to today's rates, a cash-out refinance may be worth comparing.
CapCenter offers fixed-rate home equity loans from $50,000 to $250,000, with 15, 20 or 30-year terms, on single-family primary residences and second homes, with ZERO Closing Costs (restrictions apply).
Manage the money
With a home equity loan, you get the full amount at closing and start repaying right away. Keep the funds in a separate account and pay your contractor in stages tied to finished work, not all up front. Get a written contract with a payment schedule, and keep lien waivers and receipts.
Will it add value?
Updated kitchens often appeal to buyers, but you may not get back all you spend. How much you recover depends on your home, your neighborhood and the market. A remodel in line with nearby homes tends to make more sense than one that far exceeds them.
