Backstory: Purchased this home in short sale from my wife’s grandfathers estate for 156k 2.99APR fixed/30yr after wrestling it out of HUD because her grandfather got a reverse mortgage. So after 3 years of fighting with NOVAD we finally were able to buy it. The original appraisal was for 156k when the market was terrible. After we purchased the home it was valued at 240k on the new market but we still purchased for 3 year previous appraisal price. The inside was totally gutted down and rebuilt from the studs up, floor plan was opened up and an entire master bathroom added. So I know this would add to a new appraisal price (around 275-300k now?) All the work was done by me, my wife and my FIL. So we paid for everything out of pocket and put around 30k @ 8%APR on a Lowe’s card we are whittling away at. Now that the inside is completely done, I am financially depleted. FIL wants to keep going and put a new roof on, gutters, soffit work, paint the cedar siding, and replace porches to complete EVERYTHING in this house inside and out so we don’t have to worry about anything in the future. I’m guessing the rest of the work to be at around 30k in material. To pay for all of this to get done it would be more on the order of 80k. He is 65 years old and wants to help me do this before he is physically unable to do so, thus creating the urgency to do this now instead of waiting.
My question is: what is the smartest way to pay for the rest of Reno we want to do? Can I take out a home equity loan? I have roughly 3 years of payments on the home under my belt, so if I get it re appraised is my equity the difference between my current balance on the loan and the new appraisal price? If I get a home equity loan does it tack onto my existing mortgage and not affect my sweet 2.99 % fixed?
Any advice?
original posted by Elsavagio to r/personalfinance on Tue, 09 Apr 2024 15:37:32 GMT.