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/u/LazyBoyD
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- Here’s the deal. I have an undersized home bought in 2020 (3bed/1 bath, ~ 1200sf) with another child coming and the family needs more space.
- Current interest rate is 2.6 % and I have paid down about 25% of the original cost of the house. Owe about $205K
- Homes currently on the market suitable for the family are $375K+ and would have to buy at a much higher interest rate of course.
Does it make sense to tap into the equity to finance an addition? I would need about $50K in a HELOC and finance the rest with cash savings. I’ve always heard that it’s bad to use a HELOC for renovations and improvements. Will also note this isn’t our forever home.
submitted by /u/LazyBoyD
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Buy new home or open HELOC to help finance an addition?
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