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[quote=Anonymous][quote=Anonymous]You may want to look at your HELOC for the terms.  Some of the HELOCs have an option to fix so if you borrow the 100K from the HELOC at 2.75% and interest rates remain low, you can let it float.  If they start to creep up, you can lock it in at still a very low rate.

I've done something similar and am letting it float (currently I'm at 2.99%).  I took the cash I was going to use to pay for the renovations and put it in solid quality blue chip diviend paying stocks.  I'm making an average of 4% in dividends on the stocks  I invested plus any appreciation of the stock.  I'm very well diversified so I realize this strategy is not for everyone, but it's working out very nicely for me.  If you don't have the time to select the individual stocks, you may want to look at some dividend growth mutual funds that have attractive yields and less fluctuation in the price of the security.

I'm more of a buy and hold guy so I can wait out any fluctuations in the market and with an average 4% yield, and 10% growth in dividends every year, it's a no brainer for me.  Good luck to you whichever way you decide to go!  Another benefit is that you are getting a tax deduction for your interest payments against your ordinary income (presumably a higher rate than what you are paying on the dividends (15%)).[/quote]

Thanks, this is what I figured.  We need to do some more research to work out what (if anything?) might get us a 4 percent return.  I'm leaning toward maybe a half and half and investing the rest in something income producing that will hopefully generate more income than interest paid.[/quote]

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