A kitchen remodel loan is a personal loan that you use to pay for kitchen renovations. And it has to be repaid in monthly installments along with interest.
Loan amounts range from $1,000 to $100,000, and repayment terms are typically two to seven years. Rates range between 6% and 36%.
These loans don't require collateral, which means approval and the loan's annual percentage rate are based on information like your credit and income.
Monthly payments are often higher on personal loans because they can have higher rates and shorter repayment terms than home equity financing.
Many personal loans can be financed within a week, while a home equity loan or line of credit can take a few weeks or longer if the lender requires an appraisal.
No collateral: With an unsecured personal loan, you don’t have to put the home up as collateral, so the lender doesn’t have the right to take it if you fail to repay.
Fast funding: Some lenders can fund a personal loan the same or next day after you apply. Most personal loans are funded within one week.
No Tax Benefits: Unlike home equity loans and credit lines, you cannot claim a tax deduction on the interest paid on a personal loan.
Rates may be higher for bad-credit borrowers: Borrowers with bad credit (FICO 629 or lower) may not qualify, or may qualify for the APR.