Congratulations on paying off the house!I recently paid off my mortgage! I'm now saving the portion that was going to the principal and interest in another account to either invest or pay for future updates. The home was built in the 80s, so it'll probably need new siding soon. The roof is current and we already upgraded the HVAC unit.
We'd like to update the kitchen with new cabinets, tear down the soffit, remove walls, new floors, new layout, etc. It's a major remodel. Should we just save up to do it with cash or take a HELOC?
It'll probably take me 5-8 years to save up for it depending on how extensive the remodel is and what choices we make. But we won't be able to enjoy the kitchen in those years. The other option is taking a HELOC, doing the remodel, and then slowly paying off the HELOC as our only debt on the house. We'll be paying more with interest rates, etc.
Any suggestions or things we should consider or think through? We plan to be in the house for the next 20 years at least. I've never taken a HELOC so is there anything I should keep in mind? I've never done a major remodel, especially a kitchen, so anything we should be wary of? It seems like construction and remodels costs are exorbitant these days.
What else am I not thinking about?
I’d not be in a hurry to go back into debt.
I’d rather take all my Netflix time, Facebook time, and all other garbage time and do some side gigs and turn that time period for waiting to get a new kitchen, into a couple of years. You could do it. Make it fun. Set up a kitchen fund and watch it grow. Have a great handle on your upgrade costs so your finish line is somewhat accurate.
Enjoy being debt free. Don’t be that person who every time they finally pay off the car note, they get anxious and go get another car note.
Helocs are stupid. And yes, I did one years ago and it was indeed, stupid. …some folks will tell you bla, bla, bla in the correct circumstances…I’m saying, don’t do it. You can thank me later.
Statistics: Posted by Tundrama — Sat Jul 27, 2024 9:23 am