Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I purchased my house 2 years ago this month. It's going great, but I want to have the attic finished into a Master bedroom for more space. I have a few contractors coming to give me quotes. I'm expecting it to cost between $15-25K.
What is the best way to finance this? Would it be a personal loan? What are considered reasonable interest rates for one with good credit? A home equity loan would be ideal, but in this economy, I'm sure I have NO equity in my home as I only did a down payment of 3.5%.
Not being facetious, but the old fashioned way...with cash. Save money for it over the next couple years and do it once you have enough to pay for it free and clear. In that time period you may come up with better ways of designing the space, decide you don't need it afterall, your house could end up worth half of what it is now, or you could lose your job for an extended period of time.
Honestly, with no equity in your home and no cash to do it, I wouldn't just yet. Save for it in cash.
What's the hurry to plunge yourself into more debt after making the first silly financial decision?
Listen, you'll enjoy that new room a lot more if you're not freaking out about how to pay for it. Also, if you're not stressed out for cash, you can execute your dream and vision more faithfully...not scrimping here and there because you're strapped and limited in your choices.
With no equity in the home I don't think it is smart to go farther into debt for an optional home improvement.
If it was a repair that had to be done....furnace needed replacing or something similar, maybe that would require getting a loan.
With a down payment of only 3.5% you may have purchased a more expensive home than you could afford anyway. Why would you want to go into debt another $15 - $25K?
With no equity in the home I don't think it is smart to go farther into debt for an optional home improvement.
If it was a repair that had to be done....furnace needed replacing or something similar, maybe that would require getting a loan.
With a down payment of only 3.5% you may have purchased a more expensive home than you could afford anyway. Why would you want to go into debt another $15 - $25K?
I hate when people say that. There is a lot more that goes into whether or not someone can afford a house than just looking at how much they put down.
But to the OP, I don't really understand why you'd want to finance the repairs. I am not criticizing you, but I just don't get why your first thought wouldn't be to wait until you could pay for it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
