Waste Of Equity
I did the kitchen, living, entry, basement (and bath)and mechanical on my own. got all the supplies from work. Spent virtually nothing. I want to refi for about 12-15 in cash for the 2 beds on the ground level and put on a 2nd story/loft. W/O the remodelling I already have 12 grand in equity, with all the work I've got to have at least 20-25. I don't want to have to pay for appraisals and closing costs. I have great credit, but it seems like a waste to throw 3000$ of that equity away on closing costs. Al the refi options I've seen so far advertise "no Closing Costs", but they really just wrap them in and capitalize them. how do you get around throwing away equity to pay for closing costs??
How do you expect the mortgage people to get paid ??? Wrapping all the closing costs into the loan is sooo very nice. (just make sure they aren't clobbering you to do it) Thats your ticket, take it.
One more thing, is the second story loft really needed ??? I would take another look at the cost (both time and money)compared to extra value it is giving you and decide. Of course I don't know your situation but I'm guessing it's not worth it.
Let me know more. Thanks
yeah, i think its worth it. I see what others spend on improvements, and the amount i get out of every dollar I spend is phenomenal. figure this...the house has 3 small bedrooms, in the loft to be... master suite. it also has a gorgeous lake view. I'm talking 15 seconds from the lake, every other house in the neighborhood is 250-300 plus. I paid 117. the way i see it is if i put in 25, i could stand to make 100+, so i definitely think its worth it. Raw material cost is really my only issue. I owe 106, and if i refinance for 130, i dont like the idea of only seeing 20000 of the 25000$ difference. one more thing, my closing costs on my first was only 1600$. did I just get a good deal or is that standard??
Hey, if you feel spending $25k is going to net you $100k and the work isnt going to take forever then its sounds like a no brainer. Good luck. Your original closing of $1,600 is about standard. When you do refinance just make sure you pull out as much as you can. Don't try to figure out exactly how much your improvements will cost and use that number. TAKE AS MUCH AS YOU CAN.