- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Best way to finance home addition
Posted on 7/11/14 at 9:21 am
Posted on 7/11/14 at 9:21 am
I recently purchased a home for $250k. I put 20% down so I have $50k equity in the home.
I would like to do an addition to the home and some renovations totaling around $50k. What is the best way to finance this? HELOC? Pardon my ignorance on this subject!
I would like to do an addition to the home and some renovations totaling around $50k. What is the best way to finance this? HELOC? Pardon my ignorance on this subject!
2
Posted on 7/11/14 at 9:29 am to tigerfan311
I didn't think HELOCs went over 80% LTV but that may just be my bank
Posted on 7/11/14 at 9:29 am to tigerfan311
Very unlikely - like, next to impossible - that anyone will give you a HELOC that would effectively render you 100% mortgaged. I think you're going to have to just save up for it.
Posted on 7/11/14 at 10:03 am to Cold Cous Cous
You have any cash in the market? I know our firm has asset based credit lines. So for ex if u had 100k invested in the market u could get 65% of that in credit at around 5%. Pay it off at your leisure.
Posted on 7/11/14 at 10:33 am to roguetiger15
Thanks for the info guys.
Probably have close to $50k between different IRA and stock accounts.
Probably have close to $50k between different IRA and stock accounts.
Posted on 7/11/14 at 10:54 am to roguetiger15
That seems like a lot of leverage, especially if retirement is his only other significant holdings. Just my opinion though.
Posted on 7/11/14 at 10:56 am to tigerfan311
Can't be retirement accounts. We do a lot if those credit lines for purposes just like yours or for the client to pay taxes. It gives the client the ability to cash in about 3 days and u don't have to liquidate your current investments. Not to mention you pay it back at your convenience. You are basically your own bank. If your invested money returns at least 5 percent you're getting money fo free
Posted on 7/11/14 at 2:49 pm to yellowfin
quote:
I didn't think HELOCs went over 80% LTV but that may just be my bank
PenFed offers 85/15 (4.49 %) and I am sure a few others as well - probably dependent upon income and credit score to get above typical magical number.
This post was edited on 7/11/14 at 2:51 pm
Posted on 7/11/14 at 4:07 pm to Will Cover
quote:
PenFed offers 85/15 (4.49 %) and I am sure a few others as well
These ratios are there for a reason. Thinks housing crisis 2008. Do you think it's smart to leverage up so much?
Posted on 7/11/14 at 9:55 pm to ynlvr
You are forgetting that with an addition the home shoud be worth more after.
I do unsecured lines of credit up to 50k, then come back and pay them off with a HELOC after the addition with the new appraisal all the time
I do unsecured lines of credit up to 50k, then come back and pay them off with a HELOC after the addition with the new appraisal all the time
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News