Reply to HELOC for renovations

Forum Index » Money and Finances

Reply to "HELOC for renovations - downsides? "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]We are considering putting our home on the market next Spring. We have developed a list of updates that must be done to get top dollar (bathroom, hard scaping, roof, etc). We expect it to run about $25-$30k all in. These are items that we would be doing over the next year or two if we decide to stay in the home.  And, if we spread them out over two years, we could pay for them in cash. We are currently tight on cash as we are aggressively paying off debt, which will be done in 4 months, so we are thinking of using a HELOC to avoid dipping into savings.

We are wondering if there are any downsides to using a HELOC that we aren't thinking about - besides a drop in the market that would push the value of our home below the outstanding debt? We currently have about $200k in equity without the renovations (conservative), and the updates would get us close to the top of the market for our house in our neighborhood, resulting in another $50k in equity based on two sales in the last month.

Any advice is appreciated. TIA
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics