Are we underwater? How much? How do we know for sure?

[skaternum]

Trulia and Zillow are notoriously unreliable. Get the sold market comps or pay a realtor. Honestly, if you're going to take out a home equity loan, they will most likely require an appraisal anyway.

[thelopez2]

Originally Posted by Badfish740

We're considering converting the attached garage to two bedrooms and turning one of the existing bedrooms into a bathroom attached to the master bedroom.

Will it be permitted? Are you adding a garage somewhere else?

If not, I think it s a bad idea, talk to a LOCAL lender or appraiser first, if you are concerned about value , being underwater, or spending extra money that give your home no additional value.

If nonpermitted, In my area an unpermitted garage conversion adds zero value and you can't count the rooms in the living space. I've seen a home where they had to remove a bath from a garage after they listed it in the MLS as an extra bathroom.

You might want to ask this in NJ forum or real estate forum

Originally Posted by musman

I would get in touch with realtors in my area and tell them I want to sell the house. give me appraisal. that is no charge. that ll give u some idea.

Or you could just tell them the truth, I know , tough concept.

[Huckleberry3911948]

underwater is a meaningless term. never buy a house without a clear intention of paying off the mortgage in a relatively short period of time. the "leverage" game is a nasty little occupation americans have picked up in the last 20 years. dont be a player.

[texdav]

Underwater;at what point? It really only matters once you go to sell. Did you refi which can lower final cost? I know a lot who bought as interest rates are still at historics low range and Dodd/Frank rules on lenders documentation likely will tighten lending.

[MaseMan]

Originally Posted by skaternum

Trulia and Zillow are notoriously unreliable. Get the sold market comps or pay a realtor. Honestly, if you're going to take out a home equity loan, they will most likely require an appraisal anyway.

This. Zillow is a joke. Haven't used Trulia enough myself, but I'm guessing it's not much better if it just gives a vague "guesstimate" like Zillow.

OP, if you like your location and your current house, then why worry? The only concern I'd have about adding on to the house is that you might risk overbuilding for your neighborhood.

[TrapperJohn]

The risk is an "unplanned" move...