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05-13-2008, 06:17 PM
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Member
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Join Date: Nov 2007
60 posts, read 60,531 times
Reputation: 25
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PLEASE HELP: Home Equity Question
I have about 22,000 in home equity. I bought my house on the last day of last year. I have this thought of using the home equity in my house to pay for the completion of my basement. I know the completion of my basement could add about 12 -15 dollars worth of value to my basement or even more, I could probably get the job done if I look around with the economy the way it is. Does anybody think it is a bad idea? Would I be able to use that equity or is it to soon? Would using that equity make my monthly payments go up? Somebody help here.
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05-13-2008, 06:31 PM
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Senior Member
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Join Date: Apr 2008
2,132 posts, read 1,169,481 times
Reputation: 483
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Your payments will go up. This is not the time to tap into your equity line.
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05-13-2008, 06:39 PM
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Senior Member
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Join Date: Jun 2006
Location: FL to GA
802 posts, read 892,379 times
Reputation: 220
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Even if you have that in equity, the bank will probably only give you 85% of loan to value. Gone are the days that you are able to tap into all your equity.
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05-15-2008, 11:51 AM
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Senior Member
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Join Date: Oct 2007
2,351 posts, read 1,806,960 times
Reputation: 950
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Don't tap in to your equity, especially for such a little amount of money. Just save up over a couple of years and then work on your basement.
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05-15-2008, 12:26 PM
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And the Word was made flesh, and dwelt among us
Status:
"Invite Jesus to His birthday this year."
(set 6 days ago)
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Join Date: Jan 2008
Location: Suburban Chicago
3,444 posts, read 1,745,004 times
Reputation: 12342
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Regardless of how much the basement will add to the value of your home, it does nothing for you financially until you sell it.
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05-15-2008, 12:52 PM
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Misology ~ there's just no reason for it
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Join Date: Oct 2007
676 posts, read 484,359 times
Reputation: 397
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On one of the financial networks I heard that many folks are having their home equity lines of credit frozen by the lender because the value of their house has decreased in the current market. Imagine being in the middle of a major project, and having your credit frozen.
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