Question

We’re thinking about adding on a family room to our house, only way to finance this would most likely be a HELOC, we have no car payments, only $1K in debt, this addition would be roughly around $25K (around $16 of that is labor the rest would be materials) we plan on this being our forever home because of its excellent location and the price we got it for was a steal 3yrs ago, houses around here for the size we would need are way to much now. Would you do this addition? The thought of the HELOC does scare me for some reason, but I know we could afford it. Our kids are 14, 10, 5 so this extra space for them (and their friends) would be great. The only other big purchase I can think about maybe wanting in the future (next few years) would be getting a larger suv. Thanks for any advice!  

Answer 1

I’d say do it, sounds like your in an area where that amount of money would get you that + back in return, worth it if it doesn’t become your forever home. We keep bouncing between going up (our taxes are already outrageous) or going off the house and just dealing with whatever increase we get.  

Comments

We currently have about 200K in equity so yes that part doesn’t worry me luckily.  

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@gilpin that’s awesome! We don’t have that much  but we got to purchase so low compared to what everything is selling for I want to sell vs adding on. Hubs wants to add on and stay with the reason we’d still make money selling.  

Answer 2

Have you looked at places like Lending Club, Prosper, Freedom Plus - depending on your credit you may be able to get a loan pretty quick with a fixed rate. It wouldn't be a second mortgage so the interest would not be deductible.  

Comments

@crucible I’m not familiar with these?  

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@gilpin sent you a PM

Answer 3

We added on and it was a great decision and home value increased so a win win.  

Answer 4

I bet it would also increase the home's value, and make your lives better, I would do it.