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Post by workingclassdog on Sept 29, 2021 20:36:41 GMT
I am really bad at stuff like this... I believe there are different types of loans if you want to remodel..
HELOC I think comes to mind. I was at the bank and generally asked one of the bankers and that is what she suggested.
Are they hard to get? Do you pay that back as a separate loan or is it tied into your mortgage?
Maybe there is another route to take? I'm thinking around $40,000 would be where we want in total for everything. I THINK... seems like a lot but I know it doesn't go too far.
We want to do our bathrooms over .. nothing fancy at all.. replace the sink (only one), toilet and maybe make a shower only in the master.. (it's very small). And replace single sink and toilet in main bathroom.. oh maybe new mirrors and lights..
Windows (four at minimum plus new slider.. could be seven windows and slider.. all standard sizes) and carpet (stairs and upstairs only, maybe 1,000 sq. ft).
Those are the main things..
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Post by bbkeef on Sept 29, 2021 20:41:00 GMT
Talk to your bank or credit union. They will give you the best advice. They aren't hard to get depending on your credit history. Are you using one contractor or multiple contractors to get the work done? If you decide to go with a corporate type contractor, they may have financing available (probably at a higher rate than the bank).
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dawnnikol
Prolific Pea
'A life without books is a life not lived.' Jay Kristoff
Posts: 8,555
Sept 21, 2015 18:39:25 GMT
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Post by dawnnikol on Sept 29, 2021 20:49:20 GMT
HELOC I think comes to mind. I was at the bank and generally asked one of the bankers and that is what she suggested. Are they hard to get? Do you pay that back as a separate loan or is it tied into your mortgage? Maybe there is another route to take? I'm thinking around $40,000 would be where we want in total for everything. I THINK... seems like a lot but I know it doesn't go too far. You definitely need to speak with your bank with an amount in mind and they can go over the rates, etc. A HELOC is a Home Equity Line of Credit - this is a 2nd loan on top of your mortgage (assuming you have a mortgage). This can be any amount and the process varies, usually you can get one where you don't have to draw on it (use the funds) until you have figured out what you want to do with it. Another thing they might offer is a refinance, where you would receive cash out. I'm less likely to do this unless the rate is going to be lowered significantly from my current rate since I've already paid off XXX of my existing mortgage. |
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Post by workingclassdog on Sept 29, 2021 21:50:19 GMT
Another thing they might offer is a refinance, where you would receive cash out. I'm less likely to do this unless the rate is going to be lowered significantly from my current rate since I've already paid off XXX of my existing mortgage. I really don't want to refinance.. we have a great rate and a great payment.. so really don't want to mess with that. But yeah.. looks like I should just go in and talk with the banker directly and see how to proceed |
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Post by busy on Sept 29, 2021 21:56:06 GMT
A HELOC is the most flexible and can make the most sense if you don't yet know exactly what things are going to cost, when the work will be done, etc. You advance on the line of credit as you need it, so you're only paying interest on the outstanding balance, rather than getting a term loan and beginning to pay interest on the whole amount as soon as it's disbursed.
HOWEVER, you don't want to keep the balance on a line of credit once the work is done, because the rates will be variable. You want to convert to a fixed rate term loan when you are done with your renovations, so you've got your rate and payment locked in. Many HELOCs are designed to accommodate this - I would not select one that is not.
But yes, talk to your banker.
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Post by MichyM on Sept 29, 2021 21:56:10 GMT
Since you’re planning on moving, if you haven’t already, I think it would be wise to have 2 realtors come by to give ideas of what actually needs improvement. Before you take to a bank about money. I’m not sure I’d want to take a loan out on home improvements at this point in your ownership of the home, unless your house simply won’t sell without them. Also, it doesn’t hurt to establish a relationship with a realtor, even if you’re not selling for a year or more.
ETA: we were the 3rd owners of our 1955 house when we sold it in 2008. We started working with a realtor about 18 months before that. After 18 years in the house there were some small things to do. Total was maybe 10k. So glad we didn’t spend more, because the new owners did an extensive remodel before they moved in.
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Post by **GypsyGirl** on Sept 29, 2021 22:48:21 GMT
Since you’re planning on moving, if you haven’t already, I think it would be wise to have 2 realtors come by to give ideas of what actually needs improvement. Before you take to a bank about money. I’m not sure I’d want to take a loan out on home improvements at this point in your ownership of the home, unless your house simply won’t sell without them. Also, it doesn’t hurt to establish a relationship with a realtor, even if you’re not selling for a year or more. ETA: we were the 3rd owners of our 1955 house when we sold it in 2008. We started working with a realtor about 18 months before that. After 18 years in the house there were some small things to do. Total was maybe 10k. So glad we didn’t spend more, because the new owners did an extensive remodel before they moved in. I agree with this. Talk to realtors about what they think your house needs to sell. If you plan to stay, it can be worth doing the work. If you plan to sell in the next 5 years, then consider doing just what needs to be done to sell it. We did a major remodel to a 1955 house after owning it for 21 years (we've now had the house for 30 years). Our purpose was to improve it for ourselves, as well as incorporate aging in place features should we choose to retire here. Based on our location, we will get it all back and then some when we sell, but that is unusual. This time we refinanced our mortgage rather than doing a HELOC, as we were able to get a better rate going that route. We've done a HELOC in the past, but opted not to for this as it was a major remodel. Talking to your bank or credit union would be your best bet. Be open to refinancing the mortgage because rates are really low right now. |
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Post by lisacharlotte on Sept 29, 2021 22:53:58 GMT
I went thru the bank my mortgage was with. Told them I wanted a loan to remodel my kitchen. Basically I got a loan with my house as collateral. We paid off our mortgage last year, now we’re just paying off the loan.
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kelly8875
Pearl Clutcher
Posts: 4,441 
Location: Lost in my supplies...
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Post by kelly8875 on Sept 29, 2021 23:41:12 GMT
Definitely talk to your bank.
And don’t rule out a refinance later after you have used the money.
XDH and I had a HELOC, and a mortgage. We used the HELOC to build a garage, then lumped both together in a new refinanced mortgage and our payment went down, because we ended up with a better rate. And we had a good rate to start with.
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Post by mom on Sept 30, 2021 0:33:21 GMT
Since you’re planning on moving, if you haven’t already, I think it would be wise to have 2 realtors come by to give ideas of what actually needs improvement. Before you take to a bank about money. I’m not sure I’d want to take a loan out on home improvements at this point in your ownership of the home, unless your house simply won’t sell without them. Also, it doesn’t hurt to establish a relationship with a realtor, even if you’re not selling for a year or more. ETA: we were the 3rd owners of our 1955 house when we sold it in 2008. We started working with a realtor about 18 months before that. After 18 years in the house there were some small things to do. Total was maybe 10k. So glad we didn’t spend more, because the new owners did an extensive remodel before they moved in. Absolutely this. And honestly? It sounds like you pulled $40K out of thin air. Please do research and get some estimates before lifting a hammer or taking a loan. |
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Post by AussieMeg on Sept 30, 2021 0:42:31 GMT
I've done it three times over the 25 years I've owned my house, for three different lots of renovations. Each time I just refinanced my mortgage.
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johnnysmom
Drama Llama
Posts: 5,685
Jun 25, 2014 21:16:33 GMT
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Post by johnnysmom on Nov 25, 2022 13:11:38 GMT
No idea on a loan but you may want to get an estimate on the work before you go too far on financing. We just got an estimate on our bathroom, a basic remodel, and it was $35k, and that was assuming the plumbing inside the walls was all in good shape so it’d very likely be more (old house).
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Post by ~summer~ on Nov 25, 2022 15:22:22 GMT
Whats up with these one post wonders bumping old threads?
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Post by ScrapbookMyLife on Nov 25, 2022 23:17:44 GMT
I would do as MichyM suggested, talk to Realtor first to see what needs to be done.
Then get several estimates on having the work done, so you know what the estimated costs will be.
Then figure out your finances.
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Post by calgaryscrapper on Dec 8, 2022 23:27:10 GMT
Summer, I have a thought on the one posts. When you sign into the board it doesn’t bring you to page one. Sometimes, it brings you to page 1200 etc. Maybe they are responding to some of those posts.
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Post by Delta Dawn on Dec 9, 2022 1:45:30 GMT
This is important. Talk to a realtor or two. Our realtor came with a friend who got a good deal on appliances that we are happy with (most of the time). Realtor had a staging friend and home decor design. Hired her and she had teams of construction, electrical, water, tile and painters years before anyone else could get trades. Because of our realtor.
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Gem Girl
Pearl Clutcher
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Posts: 2,686
Jun 29, 2014 19:29:52 GMT
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Post by Gem Girl on Dec 9, 2022 20:34:58 GMT
Summer, I have a thought on the one posts. When you sign into the board it doesn’t bring you to page one. Sometimes, it brings you to page 1200 etc. Maybe they are responding to some of those posts. I've seen that happen when I was arriving via a link I'd made, rather than one on Google or such. |
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Post by allison1954 on Dec 10, 2022 0:54:42 GMT
I think the fact that most of them have links is telling.
They just come here to sell something or to send you to a website
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