Sell the house and buy one that doesn't require renovations.

Anonymous wrote:It's a no brainer that you need to get a job or let him make the financial decisions.

So he gets no share at all in the parenting decisions then, right?

Anonymous wrote:Why don't you just try being happy in the home you're in? Owning a $900K home free and clear is so awesome I am completely unable to sympathize with any complaints about it "needing renovation".

If his attitude is "let's do it a little at a time out of disposable income" -- then he is RIGHT and very sensible. Be happy you are married to a prudent man!

Agreed. We're never satisfied, you won't be after spending $100K, so be grateful for what you have.

As an alternative, big, long, first mortgage and put it all in a stock market index fund. You could pay for your renovations with that and have money left over.

Anonymous wrote:If it takes you 10 years to save up $100k, it will take you a lot longer than that to pay off a $100k loan. I would save more aggressively for the renovations ($100k in 5 years seems doable) and try to do the renovations part at a time.

+1

It's a no brainer that you need to get a job or let him make the financial decisions.

If it takes you 10 years to save up $100k, it will take you a lot longer than that to pay off a $100k loan. I would save more aggressively for the renovations ($100k in 5 years seems doable) and try to do the renovations part at a time.

Anonymous wrote:Why not start smaller, with an amount your DH is more comfortable with? Do 25k of renovations, pay it off in 2.5 years, and take out another LOC.

Neither of you is crazy in this situation, so you should try and find a middle ground.

I agree with this solution. I don't understand the PPs who say to not get a HELOC. Interest rates are ridiculously low and if the renovations will help them stay in the house for many more years, then you need to do it now. But prioritize and do it gradually so your DH is comfortable with it.

Your house should never be collateral for anything other than a mortgage.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My parents own their house outright and have for ~15 years. They have an HEL with their local bank and have always used it for cars (they buy used) rather than taking out car loans. I don't see a problem with it. Make sure you get a good rate.

This isn't very smart. They have made their house collateral for a car loan. Silly silly.

But they don't have a mortgage payment and could easily make the monthly payments. They have done this for two sets of cars over 15 years and have never had a problem. Their most recent cars are paid off and they don't actually utilize the line of equity currently. Why is it not smart?

Depends how much they are saving, if any, by using the HELOC versus getting a loan. Our HELOC has a higher rate than an auto loan, but the HELOC is deductible.

Also depends how close they are to retirement and how their health is. To have a loss of income due to retirement or a health crisis and then have to pay the HELOC or lose the house would not be good.

Their equity line had a much lower rate than anything a dealership or other bank offered in terms of a car loan. They have plenty saved for retirement, were also able to put my brother and I through college, are in their mid-50's and although my mom has had health problems (cancer twice), they have good insurance and always were able to cover their medical bills. Never in danger of not having a job - my father is a teacher with Master's plus 15+ years experience plus previous experience as an engineer, and is very valuable to his school system (curriculum leader). Even if he were to lose his job at the school, I am sure he would be able to find another and I know they have a cushion to pay their expenses in the meantime.

I just don't understand the harshness of some PPs calling my parents silly for using their home equity. I think it is actually very smart of them, since they saved thousands in interest they would have otherwise paid with a traditional car loan.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My parents own their house outright and have for ~15 years. They have an HEL with their local bank and have always used it for cars (they buy used) rather than taking out car loans. I don't see a problem with it. Make sure you get a good rate.

This isn't very smart. They have made their house collateral for a car loan. Silly silly.

But they don't have a mortgage payment and could easily make the monthly payments. They have done this for two sets of cars over 15 years and have never had a problem. Their most recent cars are paid off and they don't actually utilize the line of equity currently. Why is it not smart?

Depends how much they are saving, if any, by using the HELOC versus getting a loan. Our HELOC has a higher rate than an auto loan, but the HELOC is deductible.

Also depends how close they are to retirement and how their health is. To have a loss of income due to retirement or a health crisis and then have to pay the HELOC or lose the house would not be good.

Anonymous wrote:

Anonymous wrote:My parents own their house outright and have for ~15 years. They have an HEL with their local bank and have always used it for cars (they buy used) rather than taking out car loans. I don't see a problem with it. Make sure you get a good rate.

This isn't very smart. They have made their house collateral for a car loan. Silly silly.

But they don't have a mortgage payment and could easily make the monthly payments. They have done this for two sets of cars over 15 years and have never had a problem. Their most recent cars are paid off and they don't actually utilize the line of equity currently. Why is it not smart?

We need more info about what is meant by renovations. Are you talking about home maintenance? Or getting a spa bathroom and commercial kitchen? Or somewhere in between?

9:05 is exactly right. Unless you can fit the monthly payments in your budget without compromising other priorities you shouldn't do the renovations until you can pay for them. Perhaps a comprise would be putting the estimated monthly payments in a high interest savings account for two years so you know what it is like to live with the new payment and then you have cash to put towards the project.

Your husband is correct.

If you want to spend 100k on renovations,perhaps you should get a job?

Anonymous wrote:I will say it! He brings in the income, it's his decision.

Disagree. But I think it is his decision because he seems much more financially prudent.