How to Pay for a Kitchen Remodel in Colorado Springs

Most homeowners pay for a kitchen remodel with a mix of savings and borrowed money, not one or the other. Nationally, 84% of renovating homeowners pull from savings, and among those spending more than $50,000, 23% borrow against their home equity. On a $60,000 Colorado Springs kitchen, that often looks like cash for the deposit and equity financing for the rest.

You’ve got a number in your head, and it’s bigger than what’s sitting in your checking account. That’s normal. Our full kitchen remodels run $45,000 to $105,000, with most mid-range projects landing between $50,000 and $75,000. Most people don’t write one check for that.

We’ve been remodeling kitchens in Colorado Springs since 2010, and every bid we write is itemized with a staged payment schedule attached, so we see how homeowners in Briargate, Black Forest, and the Broadmoor put the money together.

One note first: we build kitchens, we don’t lend money. Nothing here is financial advice, so talk to your bank, credit union, or a financial advisor to get a sense of what you can afford and how you should pay.

What most homeowners use to pay for a kitchen remodel

Savings do most of the work, and something else covers the gap. The 2026 U.S. Houzz & Home Study, which surveyed more than 20,000 homeowners, found that 84% funded renovations from savings and 34% used credit cards.

The strategy changes once the project gets expensive. Among homeowners spending more than $50,000, 23% borrowed against home equity through a home equity line of credit (HELOC), a cash-out refinance, or a home equity loan, and 20% used cash from a recent home sale. 

Colorado Springs homeowners have an advantage here. The median home sale price in the city was about $460,000 for the three months ending June 2026. If you bought before 2020, there’s a chance you’re sitting on six figures of equity and a good mortgage rate. Borrowing against that equity helps to fund the remodeling project without touching the first mortgage.

Comparing your kitchen remodel financing options

Rates move, and the published averages vary depending on who’s surveying and what they’re measuring. Here’s roughly where things stood in mid-August 2026.

Borrowing against your house costs less than half what a credit card costs, which is why home equity dominates at this project size. Home equity loans and HELOCs are priced close enough to each other right now that the choice comes down to how you want to borrow, not to the rate.

Is a home equity loan for a remodel better than a HELOC?

With a home equity loan, you borrow the full loan amount at once, get a fixed interest rate, and your monthly payments never change. That predictability is worth a lot when you’re already making forty other decisions.

A HELOC works similar to a credit card. You get approved for a limit, then draw against it during a draw period that often runs about 10 years, paying interest only on what you’ve used. That flexibility helps if you’re phasing the work. The tradeoff is a variable rate that can rise after you’ve committed.

Either way, most lenders cap your total borrowing around 80% to 85% of your home’s value minus your mortgage balance, though the limit varies by lender. They’ll pull your credit report and look at your credit score, your credit history, and your debt-to-income ratio.

Ask about origination fees before you compare offers, because a lower rate with 3% in fees isn’t always the cheaper loan. The interest may also be deductible when the money substantially improves the home securing it, which is a question for your tax preparer.

Do remodelers offer financing?

Most do, including us, though almost none of them lend their own money. What gets called contractor financing is typically a third-party loan arranged through a lending partner. Ours is Lend Home Improvement.

The reason to use it is speed. There’s no appraisal, and it moves faster than a home equity loan. Keep in mind that contractor financing is usually unsecured, so your rate comes off your credit profile instead of your equity, and unsecured money usually costs more than secured money.

However you pay, the payment schedule works the same.

What our payment schedule looks like

Our kitchen projects run on a 45/45/10 schedule, and the first deposit doesn’t happen until your design is finished and you’ve approved an itemized bid.

The 45% deposit before demolition is what gets the project moving and puts your products and materials on order. You’ll see exactly what’s included on the itemized bid you approved.

Here’s the test to run on any remodeler: ask what the deposit buys, item by item. Ask whether payments are tied to milestones or to calendar dates. And check that the final payment is 10% to 15%, held until the work is signed off, because that holdback is what keeps the punch list from dragging. Those are a few of the questions worth asking before you hire anyone.

Line up the money before you sign

Get the itemized bid first, then shop for the loan. A real number lets you borrow the right amount instead of guessing high and paying interest on money you didn’t need. Many lenders will pre-qualify you with a soft credit pull that doesn’t affect your credit score, so you can compare two or three offers in an afternoon. Ask each one when a hard inquiry kicks in.

Then add 10% to 15% on top of the bid for the surprises.

The bottom line

Paying for a kitchen remodel in Colorado Springs usually means savings plus a home equity loan or HELOC, at rates in the 7s and low 8s as of August 2026, spread across a payment schedule tied to real project milestones. An itemized bid is extremely helpful for getting a properly-sized loan.

If you need a real number to take to a lender, come see us. Schedule a free consultation at our showroom on North Nevada, bring your photos, and we’ll talk through scope and budget. If you want to move forward, we’ll send a designer to your home for a site visit, which is where the specifics of your project get defined.

Financing can be a critical piece of the equation for your kitchen renovation. Once you answer the money question, the rest of the project begins to take shape and you’re on your way to cooking in a beautiful new kitchen.

Frequently asked questions

How long does it take to get a home equity loan? Two to six weeks is typical, and the Mortgage Bankers Association puts the industry average at 39 days from application to approval. On a primary residence, add a few more days after closing for the federal three-day window to back out before the money is released. Start the loan conversation while your design is still in progress.

Can I use a personal loan for a kitchen remodel? Yes. Personal loans are unsecured loans, so your house isn’t collateral and funding usually takes days instead of weeks. They carry higher interest rates than home equity borrowing and often include origination fees. They make the most sense for smaller scopes or homeowners without much equity.

What credit score do I need to finance a kitchen remodel? Every lender sets its own bar, but most home equity lenders want a credit score in the mid-600s or better, plus a debt-to-income ratio under about 43%. Personal loan lenders often start around 600. The advertised low rates typically go to borrowers above 720.

Should I put a kitchen remodel on a credit card? At an average rate of 19.56%, a carried balance costs more than twice what home equity borrowing costs. A 0% promotional card can work for appliances or fixtures if you can clear it before the promotional period ends, so check what the interest looks like if you don’t.

Further reading

• 2026 U.S. Houzz & Home Study: national data on renovation budgets and how homeowners fund them.
• Bankrate on using home equity for renovations: a plain breakdown of home equity loans versus HELOCs, with rate tracking.