How to finance a remodel, and any other question you might have

​​We’ll also explore financing options – including local lending programs – to help turn your dream kitchen into reality without breaking the bank. Let’s dive in!

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Increased Home Value and ROI
One major advantage of remodeling your kitchen is the increase in property value and resale appeal it can deliver. Home buyers consistently rank the kitchen as one of the most important spaces, so upgrading it often boosts your home’s market value. An updated kitchen with high-end finishes or new appliances helps your home stand out to prospective buyers, which can translate to a higher selling price and even a faster sale. In fact, about 80% of buyers put the kitchen in their top three most important home features, and many are willing to pay extra for a house with a modern, remodeled kitchen.

Return on Investment (ROI):

While every project is different, most kitchen renovations recoup a significant portion of their cost at resale. Estimates do vary – and it’s important to set realistic expectations – but studies show kitchen remodels often pay back 60%–80% (or more) of their cost in increased home value. For example, a minor mid-range kitchen upgrade averaging around $23k might add roughly $18k to your home’s value, about a 77% cost recoup. One Denver-area analysis found a minor kitchen remodel can yield up to a 72% ROI for homeowners. Nationally, the National Association of Realtors (NAR) reports that a complete kitchen renovation typically returns about 75% of its cost at resale, while even smaller “kitchen upgrade” projects (less extensive than a full remodel) return about 67% on average.

Note: The exact ROI you’ll get depends on what you choose to do and your local market. High-end luxury remodels with top-of-the-line materials may not recoup as high a percentage as a cost-conscious remodel with broadly appealing finishes. For instance, a major upscale kitchen overhaul (national average ~$126k cost) might only recoup ~54% of that investment on resale. In contrast, a modest renovation focused on functional upgrades can recoup 70–80% or more. Geography matters too: ROI tends to be higher in hot markets – one report noted minor kitchen remodels in some regions recouped over 90% of costs. Bottom line: remodeling your kitchen will add value, but the financial return varies with your project’s scope, the quality of finishes, and buyer preferences in the Thornton/Denver area. We always make it clear to clients that while a kitchen remodel is a wise investment, the payoff is not 100% guaranteed – it depends on the choices you make and the market conditions when you sell.

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Local Market Impact: In the Denver metro real estate market, updated kitchens are a huge selling point. Denver buyers appreciate modern, open-concept kitchens with quality cabinets and countertops – features that can make your home more competitive. One 2024 Denver report noted that even simple kitchen improvements (like new countertops or a better layout) can “significantly boost the value and appeal” of a home. Upgrades such as custom cabinetry, stylish backsplashes, and added features like a spacious island not only impress future buyers but also increase the appraised value of the property. In short, a well-executed kitchen remodel in Thornton, CO can raise your home’s value and yield a strong return when it comes time to refinance or sell. Just be mindful to keep the remodel in line with neighborhood standards (you generally don’t want the most expensive house on the block due to an over-the-top kitchen).

Remodeling and Improved Quality of Life at Home
While the financial gains are important, many homeowners say the biggest benefits of a kitchen remodel are the lifestyle improvements. Your kitchen isn’t just a showpiece for future buyers – it’s the heart of your home. Renovating it can greatly enhance your day-to-day comfort, enjoyment, and even your family’s routines and health.

Joy and Enjoyment: According to a 2022 NAR survey, a complete kitchen renovation earned a “Joy Score” of 9.8 out of 10, indicating nearly universal homeowner satisfaction. After upgrading their kitchens, 86% of homeowners reported an increased sense of enjoyment at home – they simply enjoy their living space more than they did before. In the same study, 94% of people felt a greater desire to be at home since completing their kitchen remodel. This makes sense: a bright, updated kitchen tends to become a favorite gathering spot for the family. You might find yourself savoring your morning coffee a bit more, happily cooking dinner instead of feeling like it’s a chore, or hosting friends for get-togethers with pride in your beautiful new space.

A modern kitchen remodel with an open-concept design, new cabinetry, and updated appliances – upgrades like these not only add home value but also make the kitchen a more enjoyable place to spend time.

Family Time and Lifestyle: The impact on quality of life is more than just subjective happiness – homeowners truly use and enjoy their homes more after a kitchen upgrade. One survey of people who remodeled their kitchens found that nearly 50% spend more time with family in their new kitchen, and 41% cook at home more often than they did before. A better layout and modern appliances can make cooking easier and more fun, encouraging families to eat home-cooked meals together (which often means healthier eating habits). In fact, about 33% of homeowners adopted a healthier lifestyle after renovating the kitchen, according to that survey. They may be trying new recipes, storing more fresh foods in that big new fridge, or just enjoying a cleaner, more inviting environment that motivates them to dine in rather than get takeout. Simply put, a kitchen remodel can rejuvenate how you live in your home – from enjoying casual breakfasts at your new island to hosting holiday gatherings in a space you’re proud of.

Better Functionality: Don’t underestimate the everyday practical improvements. A well-designed remodel can vastly improve your kitchen’s functionality and ease of use. Think about more counter space, smarter storage solutions, improved lighting, and efficient workflows (for example, relocating the sink or range for better workflow). By optimizing the kitchen layout and storage, you’ll eliminate clutter and frustration. No more inaccessible corner cabinets or lack of outlets where you need them. Everything from cooking dinner to unloading groceries becomes easier with a thoughtfully remodeled space tailored to your needs. Homeowners often say these upgrades “allow for better functionality and livability,” making the home life run more smoothly. And there’s a psychological benefit too – completing a large project like a kitchen remodel can give you a sense of accomplishment and pride in your home. Every time you step into your beautiful new kitchen, you’ll get that feeling of “I love this space!” which is priceless.

In summary, remodeling your kitchen can greatly improve your quality of life. You gain a more enjoyable space, potentially strengthen family connections (cooking and eating together), and remove many daily pain points of an outdated kitchen. It’s not just about aesthetics – it’s about creating a home environment that better supports your lifestyle and happiness.

Financing Your Kitchen Remodel

(Options for Front Range Area Homeowners)

Once you’re excited about the prospects of a kitchen remodel, the next big question is usually “How do we finance it?”. Kitchen renovations can be a significant investment, but there are multiple financing options available to make your project feasible. Below we outline common ways to finance a remodel, and we’ll highlight some localized resources in Colorado that might help fund your dream kitchen.

1. Personal Savings: The simplest scenario is paying for the remodel out-of-pocket from your savings. Using savings means you won’t have debt or interest to worry about, and you avoid loan applications altogether. Of course, not everyone has enough cash on hand for a full kitchen overhaul, but even partially funding the project with savings will reduce how much you need to borrow. (It’s still wise to keep an emergency reserve – don’t drain your savings completely for a remodel.)

2. Home Equity Loan or HELOC: Many Thornton homeowners choose to finance improvements through their home equity. If you’ve built up equity in your property, you can tap into it with a home equity loan or a home equity line of credit (HELOC). These are secured loans that use your home as collateral, often offering lower interest rates than unsecured loans. A home equity loan provides a lump sum upfront at a fixed interest rate, whereas a HELOC works more like a credit line you can draw from as needed (with a variable rate). One advantage of borrowing against home equity is that interest paid may be tax-deductible when the funds are used for substantial home improvements (consult your tax advisor to see if your project qualifies). Using a HELOC gives you flexibility to borrow in stages as the remodel progresses, and you only pay interest on what you actually use. Many local banks and credit unions offer home equity financing – for example, Credit Union of Colorado advertises that their Home Equity Line of Credit can provide the funds you need to start or finish a home improvement project. Rates will depend on market conditions and your credit, but as of early 2025, Colorado HELOC rates start around prime plus a margin (roughly 7–8% APR) for borrowers with strong credit. Home equity products are a popular way to finance a kitchen remodel because they leverage the value in your home to reinvest in the home itself.

3. Renovation-Specific Mortgage Loans: Another option is a renovation loan or rehab loan, which is a type of mortgage designed to finance home improvements. These can be especially useful if you’re buying a home that needs a kitchen remodel, or if your remodel is very extensive. One well-known product is the FHA 203(k) loan, a government-backed program that allows you to combine the purchase (or refinance) of a house with the costs of renovations in one loan. FHA 203(k) loans are great for fixer-uppers: you can finance necessary kitchen updates and even live elsewhere for up to six months while the work is done. There are also conventional renovation loans (like Fannie Mae’s HomeStyle Renovation loan) which allow financing of virtually any type of improvement into your mortgage. These loans typically require a bit more paperwork and supervision – lenders will require contractor bids and will manage the disbursement of funds as work is completed – but they let you borrow based on the after-renovation value of your home, which can increase your borrowing limit for a big project. If you’re interested in this route, it’s wise to talk to local mortgage lenders who have experience with renovation financing. For instance, Front Range Mortgage (Denver) highlights that they offer FHA 203(k) and conventional rehab loans and will help borrowers find the right fit for their needs. Renovation loans can be complex, so working with a knowledgeable lender is key. Keep in mind you’ll need sufficient income and credit to qualify, and you may need a higher down payment or equity (for refinances) compared to standard loans.

4. Personal Loans or Credit Cards: If the scale of your kitchen remodel is relatively modest, you might consider an unsecured personal loan or even a promotional-rate credit card to cover costs. Personal loans for home improvement are typically fixed-rate loans from a bank, credit union, or online lender that provide you a lump sum to repay over a set term (often 3–7 years). Because they don’t use your home as collateral, interest rates will be higher than home equity loans – but they can be a good option if you don’t have much equity or prefer not to put a lien on your house. Many lenders in Colorado offer personal loans; for example, certain local credit unions or services like LightStream (an online lender by Truist) provide unsecured home improvement loans. Be sure to compare interest rates and terms, as they can vary widely based on your credit profile. Credit cards might be useful for smaller projects or finishing touches (especially if you can take advantage of a 0% APR introductory offer). However, credit cards carry higher interest if not paid off quickly, so they’re generally not recommended for financing a large remodel balance due to the risk of mounting debt.

5. Local and State Programs: Colorado homeowners have access to a few special programs and incentives that can help finance improvements, particularly if your remodel will include energy-efficient upgrades or if you meet certain income criteria. One example is the Colorado RENU Loan program – a statewide initiative in collaboration with the Colorado Clean Energy Fund and local credit unions that offers low-cost, long-term financing for energy efficiency upgrades. If your kitchen remodel involves things like new Energy Star appliances, better insulation, or solar panels, the RENU loan could help fund those at below-market rates. Similarly, the City of Thornton mentions a PowerSaver Loan Program that allows homeowners to borrow up to $25,000 for qualifying energy efficiency and renewable energy improvements, facilitated through local lenders (e.g. Bank of Colorado and Credit Union of Colorado participate). Additionally, Denver residents may be aware of the Denver Urban Renewal Authority (DURA) Home Rehabilitation programs, which provide grants or 0%–1% interest loans to low- and moderate-income homeowners for essential home repairs and upgrades. If you qualify, these can be a fantastic resource to make necessary improvements affordable. It’s worth checking for any utility company rebates or state tax credits for certain upgrades as well – for instance, installing a high-efficiency refrigerator or improving insulation might get you rebates from Xcel Energy or federal tax credits. In short, do some research on local programs; combining a standard loan with available incentives could significantly reduce your out-of-pocket cost.

6. Cash-Out Refinance: As an alternative to separate loans, some homeowners choose to do a cash-out refinance of their primary mortgage to fund renovations. This means refinancing your mortgage for a higher amount and taking the difference in cash, essentially converting some of your home’s equity into cash for the project. This can be beneficial if current mortgage rates are lower than your existing rate or if you want the simplicity of one mortgage payment. However, with interest rates currently higher than they were a couple years ago (hovering around 6–7% in 2025), a cash-out refi might not be the best choice unless your existing rate is also high or you really need a large sum. Always factor in closing costs and the fact that you’re extending or resetting your mortgage term. It’s wise to discuss with a financial advisor or mortgage professional to see if this option makes sense for your situation.

 

Plan Your Budget: However you finance your kitchen remodel, make sure to plan your budget carefully. Get estimates from contractors so you know how much you need. Include a contingency (typically 10–15%) for unexpected expenses – surprises can happen once you start opening up walls or replacing old plumbing. Lenders will want to ensure you can afford the loan payments, so have a clear picture of the monthly cost of any loan you take out. The good news is that by investing in your kitchen, you’re putting money back into your home. Many financing options, like home equity loans, acknowledge this by offering reasonable rates and terms since the funds are improving the asset that secures them.

Localized Lender Links:

To help you get started, here are a few Denver-area lending resources for home remodel financing (external links for your convenience):

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Credit Union of Colorado – Home Improvement Financing: They offer Home Equity Loans and HELOCs that can be used for renovations. For example, their site notes HELOC rates and how you can “use your home’s equity to help pay for a variety of projects”. You can check their current rates and products on the Credit Union of Colorado website.

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Front Range Mortgage – Renovation Loans: A local Colorado lender that highlights options like FHA 203(k) and conventional rehab loans. Their team is based in Denver and can pre-qualify you and discuss renovation loan products if you’re considering financing a large remodel through your mortgage.

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Colorado RENU Loan Program: If your kitchen project includes energy-efficient upgrades, look into the RENU Loan. It’s administered through participating Colorado credit unions and can finance things like efficient appliances, lighting, or renewable energy additions with no money down and low fixed interest rates. You can find more details on the Colorado Clean Energy Fund’s RENU Loan webpage or ask local credit unions if they participate.

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Denver Urban Renewal Authority (DURA): For income-qualified homeowners in Denver (outside Thornton city limits but worth noting), DURA offers home improvement loans at 0%–low interest for crucial repairs or upgrades. This could apply if, for instance, an essential part of your kitchen (wiring, plumbing, etc.) needs fixing and you meet their criteria. Visit DURA’s official site for their Housing Rehabilitation programs to learn more.

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(Note: Avanti Interior Remodeling is providing these links as a starting point; we don’t directly endorse any particular lender. Be sure to compare offers and consult a financial professional to choose the best financing option for your needs.)

So To Recap.... Transform Your Kitchen and Reap the Benefits
Remodeling your kitchen can be a game-changer – increasing your home’s value, improving functionality, and enriching your daily life. Whether you’re planning a simple update or a full gourmet kitchen overhaul, the advantages are clear. You’ll enjoy a beautiful, modernized space tailored to your taste, and if you ever sell your home, you’re likely to see a strong return on the investment you put into quality upgrades. Just remember that the exact financial payoff will depend on your project choices and local market, so plan wisely and set a realistic budget. Fortunately, homeowners in Thornton and the Denver area have a variety of financing tools at their disposal, from tapping home equity to specialized renovation loans and local programs, to make a kitchen remodel more affordable.

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Finally, beyond dollars and cents, think about the intangible rewards: cooking in a kitchen you love, having room for the whole family to gather, and feeling proud of one of the most important spaces in your home. Those benefits often end up being the greatest ROI of all. If you’re considering a kitchen remodel in Thornton or anywhere in the Denver metro, we at Avanti Interior Remodeling are here to help guide you through the process – from design ideas and budgeting to construction and final touches. Transform your kitchen, transform your home – and enjoy the advantages for years to come!

 

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