Home › Forums › Financial Markets/Economics › Need help finding Low/No Equity Home Improvement Loan
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February 8, 2010 at 3:21 PM #17018February 9, 2010 at 10:08 AM #511117LeaSDParticipant
Unless the “value” added to the house is materially more than the cost of doing the addition, I don’t see this working mathematically. Leverage increases when the same amount is added to the value (denominator) and to the liability (numerator). Do you care to share your estimates of the costs and value-add as well as your current home value and loan amount?
February 9, 2010 at 10:08 AM #511264LeaSDParticipantUnless the “value” added to the house is materially more than the cost of doing the addition, I don’t see this working mathematically. Leverage increases when the same amount is added to the value (denominator) and to the liability (numerator). Do you care to share your estimates of the costs and value-add as well as your current home value and loan amount?
February 9, 2010 at 10:08 AM #511677LeaSDParticipantUnless the “value” added to the house is materially more than the cost of doing the addition, I don’t see this working mathematically. Leverage increases when the same amount is added to the value (denominator) and to the liability (numerator). Do you care to share your estimates of the costs and value-add as well as your current home value and loan amount?
February 9, 2010 at 10:08 AM #511770LeaSDParticipantUnless the “value” added to the house is materially more than the cost of doing the addition, I don’t see this working mathematically. Leverage increases when the same amount is added to the value (denominator) and to the liability (numerator). Do you care to share your estimates of the costs and value-add as well as your current home value and loan amount?
February 9, 2010 at 10:08 AM #512020LeaSDParticipantUnless the “value” added to the house is materially more than the cost of doing the addition, I don’t see this working mathematically. Leverage increases when the same amount is added to the value (denominator) and to the liability (numerator). Do you care to share your estimates of the costs and value-add as well as your current home value and loan amount?
February 9, 2010 at 12:08 PM #511241biggoldbearParticipantWell, the general idea would be to get a loan that is not a “mortgage” so the liability (numerator) wouldn’t change. I don’t know if a Title I loan fits this bill, or if that would effect my LTV on the first?
Current owed= 369k
Current Appraisal = 410k (~Jan09, market has gone up a little since then)
current sq ft~1300
Would like to add ~200 sq ft master suite (bedroom with attached bath)Cost:?
Value Added?Not really sure on the last two, I know my neighbor across the street built on a room a couple years ago for ~30k to add ~150sq ft.
February 9, 2010 at 12:08 PM #511388biggoldbearParticipantWell, the general idea would be to get a loan that is not a “mortgage” so the liability (numerator) wouldn’t change. I don’t know if a Title I loan fits this bill, or if that would effect my LTV on the first?
Current owed= 369k
Current Appraisal = 410k (~Jan09, market has gone up a little since then)
current sq ft~1300
Would like to add ~200 sq ft master suite (bedroom with attached bath)Cost:?
Value Added?Not really sure on the last two, I know my neighbor across the street built on a room a couple years ago for ~30k to add ~150sq ft.
February 9, 2010 at 12:08 PM #511801biggoldbearParticipantWell, the general idea would be to get a loan that is not a “mortgage” so the liability (numerator) wouldn’t change. I don’t know if a Title I loan fits this bill, or if that would effect my LTV on the first?
Current owed= 369k
Current Appraisal = 410k (~Jan09, market has gone up a little since then)
current sq ft~1300
Would like to add ~200 sq ft master suite (bedroom with attached bath)Cost:?
Value Added?Not really sure on the last two, I know my neighbor across the street built on a room a couple years ago for ~30k to add ~150sq ft.
February 9, 2010 at 12:08 PM #511894biggoldbearParticipantWell, the general idea would be to get a loan that is not a “mortgage” so the liability (numerator) wouldn’t change. I don’t know if a Title I loan fits this bill, or if that would effect my LTV on the first?
Current owed= 369k
Current Appraisal = 410k (~Jan09, market has gone up a little since then)
current sq ft~1300
Would like to add ~200 sq ft master suite (bedroom with attached bath)Cost:?
Value Added?Not really sure on the last two, I know my neighbor across the street built on a room a couple years ago for ~30k to add ~150sq ft.
February 9, 2010 at 12:08 PM #512146biggoldbearParticipantWell, the general idea would be to get a loan that is not a “mortgage” so the liability (numerator) wouldn’t change. I don’t know if a Title I loan fits this bill, or if that would effect my LTV on the first?
Current owed= 369k
Current Appraisal = 410k (~Jan09, market has gone up a little since then)
current sq ft~1300
Would like to add ~200 sq ft master suite (bedroom with attached bath)Cost:?
Value Added?Not really sure on the last two, I know my neighbor across the street built on a room a couple years ago for ~30k to add ~150sq ft.
February 10, 2010 at 12:40 PM #511861briansd1Guest[quote=biggoldbear]Well, the general idea would be to get a loan that is not a “mortgage” [/quote]
Then the loan wouldn’t be a home improvement loan secured by the house.
This reminds me of the off balance sheet debts of Enron.
I love all the thinking out of the box that has been going on in the last 20 years. It’s just a way of hiding the debt that was accumulating. The risk was always there, but it was not captured by the traditional analysis tools/ratios.
February 10, 2010 at 12:40 PM #512620briansd1Guest[quote=biggoldbear]Well, the general idea would be to get a loan that is not a “mortgage” [/quote]
Then the loan wouldn’t be a home improvement loan secured by the house.
This reminds me of the off balance sheet debts of Enron.
I love all the thinking out of the box that has been going on in the last 20 years. It’s just a way of hiding the debt that was accumulating. The risk was always there, but it was not captured by the traditional analysis tools/ratios.
February 10, 2010 at 12:40 PM #512368briansd1Guest[quote=biggoldbear]Well, the general idea would be to get a loan that is not a “mortgage” [/quote]
Then the loan wouldn’t be a home improvement loan secured by the house.
This reminds me of the off balance sheet debts of Enron.
I love all the thinking out of the box that has been going on in the last 20 years. It’s just a way of hiding the debt that was accumulating. The risk was always there, but it was not captured by the traditional analysis tools/ratios.
February 10, 2010 at 12:40 PM #512275briansd1Guest[quote=biggoldbear]Well, the general idea would be to get a loan that is not a “mortgage” [/quote]
Then the loan wouldn’t be a home improvement loan secured by the house.
This reminds me of the off balance sheet debts of Enron.
I love all the thinking out of the box that has been going on in the last 20 years. It’s just a way of hiding the debt that was accumulating. The risk was always there, but it was not captured by the traditional analysis tools/ratios.
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