Would I be better off to buy a house for cash, and take a loan out to remodel the house? Or would I be better off taking out a mortgage, and using my savings to pay for remodeling out of pocket? I feel like interest rates would be cheaper if I paid for a mortgage. Wouldn't a home improvement loan rate be higher? If it matters, I have ~ $50,000 in savings I could use to either pay a remodeler or pay for the house.
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- Thread starter ugajay
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NOYDB
BANNED
If you feel the need to budget $50,000 for remodeling, may want to look for another house that doesn't need so much.
I would, but it's on my land. My papa grew up 20 feet from this house. The area means more to me than home value
Bigtimber
Senior Member
Maybe another way...... pay cash.....then use savings to remodel along and along and save all your interest anybody your borrowing money from is going to rear end you big time about.
NOYDB
BANNED
If that house is meaningful for you, lock it down first, remodel second.
treemanjohn
Banned
Owning a home free and clear puts you in a very strong financial position. I would remodel after I saved up for the work. This coming from someone whos been debt free for a very long time
dwhee87
GON Political Forum Scientific Studies Poster
Smart money says get the mortgage with a low interest rate and use the cash to remodel.
We paid our mortgage of a few months ago, 14 years early. Sure is a good feeling & it is amazing how quickly the monthly savings add up.
Turpentine
Senior Member
Buy the house cash. Remodel as you go.
joepuppy
Senior Member
What are the immediate needs on the house/ It's one thing to upgrade flooring and cabinets, but another to need a roof or major work. With the info you give, I'd buy and remodel as you could.
Big7
The Oracle
I know what you mean. My Daddy wasn't even in the ground good when my Uncle and my Mama sold my Grandparents farm. My Uncle probably needed the money. I know my Mama did not. Got our family split, probably no fixing it either. My money grubing MORONS, formerly know as my two sisters blowed up our family - over MONEY.
Back on topic a little. I'll be watching this thread. I'm going to be in the same boat soon. My Uncle is getting on up there and eat up with arthritis. He kept 2 acres of the farm. One acre has my Grandparents home place and he kept 1 more acre behind the house. Nobody's lived there since 2000 and it needs some work. I told him I would fix EVERYTHING so he would have a home when his "girlfriend's" house is no longer available. And I'd take care of him if he would will it all back to me.
Long story but my "sisters" got their tails involved and blew up another deal for me. I'm just getting back in the market too and wondered what would be best. Buy a fixer upper or new, ready to move into. Also interested in a lease with option?
You will be tearing your hair out trying to figure this one out. When you know more, please post-... I could use the info too.
Thanks for all the replies guys. The house doesn't need major work done. I just have a growing family and since my wife is willing to stay here on the land I love, I'm willing to turn the house into something she would love. She mostly wants cosmetic stuff. Extra bedroom and bathroom, small closet laundry room. And since she's okay living in the sticks, I feel like it's best to make mama happy
Bigtimber
Senior Member
If your a young man thats pretty handy....best advice imo. Debt free and finished in three years or so. NO interest and better than 20 years of debt. Little sacrifice early in life makes a big difference. Just don't let it make you lazy. Put those "payments" to work for you not against you one room at a time and do it right the first time and take care of it.
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livinoutdoors
Goatherding Non-socialist Bohemian Luddite
Buy the house cash. If you finace the house they can take it away if you cant pay for some reason. If you must, finance the repairs.
cullyhog
Senior Member
Pay cash, then set up a home equity line of credit. They usually have low interest rates also and are tax deductible. Just pull out what you need at the time. Pay that off and then pull out a little more.
mrs. hornet22
Beach Dreamer
^^^ This is my thoughts.
That sounds like the best plan. I hadn't even thought about that, mostly because I didn't know about it!!
JonathanG2013
Senior Member
My wife's Grandmother paid cash for her house and got a reverse mortgage to use as she felt needed.
Would this work for him guys?
Would this work for him guys?
westcobbdog
Senior Member
Only for folks in a tight financial bind but have equity in their home and nearing the end of their lives, because when the reverse mtg is paid back at persons passing, estate gets hit super hard with heavy costs and fees.
madsam
Senior Member
buy house for cash. Remodel with cash as you go.
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