Talk to me about home improvement loans

[bow4my2]

So my wife and I have come to a great understanding of wanting to make improvements and upgrades and not move. Thank god because I hate moving! Just want to know the ins and outs of what folks have done and how they work? Thanks

[T-Bone]

watching this one, momma wants to add on

[bow4my2]

Ttt

[trophy_taker]

Save your money and pay cash. Do a little at a time if you can't save enough to do what you want now.

[bow4my2]

Ttt

[apc10]

I'm in on this too. I have enough cash to pay for the upgrades I want now, but then I'd be broke. Sometimes there are improvements you just can't wait for. I was considering a home improvement loan of some sorts, but I too was wondering what folks have done and the best approach to take.

[Charles]

Save your money and pay cash. Do a little at a time if you can't save enough to do what you want now.

Excellent advice.

Buckle down and pay cash. If you can't pay cash that's red flag #1 you can't afford it.

[bow4my2]

I figured improvements are cheaper than moving

[wes122984]

I do them. 90% Ltv of after repaired value. Example : house worth 150k and owe 100k adding 40k in improvements we may give you 50-100% of what it cost. So say 50%. Making value 170k
90% Ltv gets you 153k minus what you owe 100k loan amount up to 53k or what bids are. Amortized up to 30 years interest rate is about 7%

Compared to a home equity line of credit which is also an option but max 80% Ltv current value. In same scenario only getting you 20k. Interest rate is variable but currently near 4%

Hope I confused you enough

[Cam-Mac]

I dont have any advice on the financial side, but i will add that it may be a good idea to find and vet your contractor ahead of time. You dont want to wait until you're "ready to start". He can help you plan for costs, areas to upgrade, areas to save money, etc. I would call at least four of his references as well. Imo, he should be willing to help with all of the planning stages so you will have something concrete to show the bank.

Good luck!

[C.Read]

I do them. 90% Ltv of after repaired value. Example : house worth 150k and owe 100k adding 40k in improvements we may give you 50-100% of what it cost. So say 50%. Making value 170k
90% Ltv gets you 153k minus what you owe 100k loan amount up to 53k or what bids are. Amortized up to 30 years interest rate is about 7%

Compared to a home equity line of credit which is also an option but max 80% Ltv current value. In same scenario only getting you 20k. Interest rate is variable but currently near 4%

Hope I confused you enough

Could you repeat that in layman's terms please?

[bow4my2]

^^^^this

[wes122984]

Could you repeat that in layman's terms please?

^^^^this

Home value plus 1/2 of upgrade cost , can get loan for 90% of that amount, minus your current mortgage balance.

At least, possibly more.

That help?

[bow4my2]

How is loan paid out, term , length , increase mortgage ?

[wes122984]

Up to 30 years like a second mortgage