Really struggling with whether to take out loan for home improvement

[Anonymous]

Anonymous wrote:If your mortgage is only 1/6 of your income, and you bought a house in glover park (which I'm assuming had to have cost at least $600k), then I don't see why you can't save $100k in the next year and start it then without a mortgage, and have another $50k saved 6 months later to finish.

We could cut retirement and college savings, but childcare is really what's preventing significant cash savings. So we're on track for about $100k in two years. That is probably the right decision.

[Anonymous]

Don't cut retirement and college savings to pay for a house renovation. You know that's not the right thing to do, which is why you kept your mortgage low, especially with kids that need childcare.

Reading between the lines a little, you were justifiably cautious and didn't overextend yourself on a mortgage, made sure you could pay he mortgage with one earner and gave yourself a nice buffer so you wouldn't be stressed in case of job loss, and kept yourself at a mortgage amount you could pay 20% down and avoid PMI.

All really great choices.

Then you got in the house and are itching to get things renovated, and are considering "undoing" all those really smart choices you made.

Am I kinda right OP?

[Anonymous]

Anonymous wrote:Don't cut retirement and college savings to pay for a house renovation. You know that's not the right thing to do, which is why you kept your mortgage low, especially with kids that need childcare.

Reading between the lines a little, you were justifiably cautious and didn't overextend yourself on a mortgage, made sure you could pay he mortgage with one earner and gave yourself a nice buffer so you wouldn't be stressed in case of job loss, and kept yourself at a mortgage amount you could pay 20% down and avoid PMI.

All really great choices.

Then you got in the house and are itching to get things renovated, and are considering "undoing" all those really smart choices you made.

Am I kinda right OP?

Ding ding ding. Yep. Haha. But were we too conservative? I guess I'm looking for a middle ground where we can make ourselves happier in the house without undoing our smart choices. I guess that's the holy grail This has actually been a very useful thread for me to think through these decisions. So thanks everyone.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't cut retirement and college savings to pay for a house renovation. You know that's not the right thing to do, which is why you kept your mortgage low, especially with kids that need childcare.

Reading between the lines a little, you were justifiably cautious and didn't overextend yourself on a mortgage, made sure you could pay he mortgage with one earner and gave yourself a nice buffer so you wouldn't be stressed in case of job loss, and kept yourself at a mortgage amount you could pay 20% down and avoid PMI.

All really great choices.

Then you got in the house and are itching to get things renovated, and are considering "undoing" all those really smart choices you made.

Am I kinda right OP?

Ding ding ding. Yep. Haha. But were we too conservative? I guess I'm looking for a middle ground where we can make ourselves happier in the house without undoing our smart choices. I guess that's the holy grail This has actually been a very useful thread for me to think through these decisions. So thanks everyone.

Then save up the $1k every month until you have a nice chunk to tackle one project at a time. Don't pay interest by taking out a loan. Keep your $20k emergency fund tucked away for when you NEED it.
Even $5k-10k to get you the main things you need (as a PP laid out nicely) would enable you to pay cash and still get some work done.
Good luck!

[Anonymous]

Never been sorry about the money I've spent on my homes - it always comes back at sale. That stated, I always wait to do improvements that I would have enjoyed myself and I always kick myself I didn't just do the stuff sooner. Do it. You won't regret it - and if the apocalypse happens and DC real estate tanks, you're gonna be there forever, so you'll actually enjoy your surroundings.