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[quote=Anonymous]I’m amazed that you were able to do roof, bathrooms, office, windows and roof for 100 K. Do you live in the mid west or somewhere where labor costs are much lower? My SIL just did windows in her similarly sized house and they were $125 K.

If labor really is that cheap where you are you might get your renovations for 200 K but you need to price it out. Material costs for lumber are still high. If you blow out the back to expand the kitchen you are dealing with foundation, structural engineering and framing, electrical, plumbing, mechanical, roofing etc. When you knock out a load bearing exterior wall with electrical, plumbing and HVAC you are basically bring in all the various trades so it gets much pricier than tiling a bathroom and installing a new vanity.

Things to consider since a large new build is only 50K more. Have you looked at the comps to be sure you could sell at 950? In areas where there is lots of land around established neighborhoods with older homes don’t appreciate because people can get more bang for their buck buying the new build. You don’t want to over improve your home because your ROI for improvements will vanish.

For the interest rate change, as long as you are under the debt to income level and can handle the larger payment, I wouldn’t worry about this as much as whether I could really sell my house for 950K and get the new one for 1 M.

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