Reply to Really struggling with whether to take out loan for home improvement

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Okay guys relax. We have plenty of retirement savings and college savings. Our mortgage payment is <1/6 of our total income. I like to compare to one salary in the event that one of us loses our job (we have similar salaries). Yes, we thought we could live with it and piecemeal fix over the years. Maybe we will do that, that's the decision I'm facing.    [/quote]
I re-read my OP, it was unclear re: retirement savings. We have plenty of retirement savings and college savings. The $20k is cash.[/quote]

Oh, okay that makes more sense now. I'm the PP who was aghast and horrified :)

In that case, I would pretend that the cost of my mortgage and the new loan for the home reno was actually just my mortgage and ask myself if I would be comfortable with that number as my mortgage and why I didn't just mortgage that amount in the first place.

That is essentially what you would be doing: instead of taking out a higher mortgage and getting a house with the renovation already done, you are using that same amount to do it yourselves, and "mortgaging" your renovation costs.

Why didn't you just look in a $150-200k higher price range? [/quote]
We had cash for 20% down on this price range. But I agree with the philosophy. Thanks.[/quote]

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