Reply to I don’t understand how my neighbors are paying for their renovation

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here.  Thanks for all the responses.  I guess the answer is borrowing against a paid-off house that they were given - I hadn't thought of that.  If I were gifted a paid-off house, I would just be grateful to never have a mortgage; it wouldn't be my first thought to [b]leverage myself back to the gills[/b] just to upgrade my standard of living a little bit.[/quote]

I understood your curiosity at first, but it’s becoming clearer in follow up that you’re trying to somehow convince yourself your neighbors are drowning in debt. Why? To feel better about your own home/life choices? I’m not really sure.

But a 500k loan on a 160k income is doable, especially if no student loans. And it’s entirely possible they had saved up earlier on (especially if they lived in the paid off house for a while before renovating) so maybe they only took out 350k and had 150k cash.

It is entirely possible your neighbors are about to have a newly fixed up house worth close to $1.2m + and be financially comfortable. [/quote]

Yes. It really seems like the OP is just very jealous that her neighbors are going to be living in this beautiful house and has to convince herself that they really can't do it and are going to be karmically punished for some reason. No. We have the same HHI and a 500k loan would be doable, but more likely they had cash saved up and they have a much smaller loan. [/quote]

OP here. I’m not jealous at all. As mentioned, I didn’t even think about the fact that they would borrow against an inherited, paid-off house because it’s not something I would do. I actually have lots of untapped equity and could do the exact same thing if I wanted to.

I’m just surprised that they did this because, as I mentioned, this is not a Bethesda 
sh*tshack and their $900,000 house was nice enough before the renovation. The renovation is a want — not a need — and I wouldn’t want to go into debt for 30 years for something like that. But that doesn’t mean I don’t think they can afford a $500-600K mortgage or that I’m jealous. Different strokes for different folks.[/quote]

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