Thinking about moving
We’re thinking about moving come fall. Honestly, if our house could magically grow another room we’d just stay here forever. FOR.EV.ER. But the odds of that happening, while non-zero, are pretty small.
Hence the moving.
We are trying to stay in the John B. Cary district or slip, undetected like a family of cockroaches, into the Fox district. If anyone finds a spare couple hundred grand they aren’t using, send it my way, ok?
dude, add onto your house. refinance bc of your arm deal running out and to get the money for the addition. if you love it there so much.
add an office and maybe a laundry room off of the back of your kitchen with a bedroom and 2 bathrooms (bc you will lose your one weird bathroom to make this work) on top of it.
pow!
— Wolf | @
that’s a pretty good idea.
— nic | @
You know where they have nice big houses for cheap? Barton Heights
— john m | @
STILL thinking about moving after yesterday?
— Susan | @
I didn’t think yesterday was that bad. You guy really don’t have that much stuff.
— Ross | @
Done. The check’s in the mail. OMG THAT JOKE NEVER GETS OLD!
No, but seriously, good luck with this.
— BK | @
Wolf got the right idea - with rates this low — you will do better in the long run if you can add on to the house - I guess if their is room… selling sucks right now… but when it gets better and you still want to move — BAM you have some extra square feet!!
— Eric | @
I said it was a good idea, but doubt that Ross has the 75-100K in equity to pull out of his house to finance such a project
— nic | @
but if he can get a loan for a much more expensive new house, he should be able to get the loan for the addition on top of the mortgage. you have to have drawings or maybe a building permit. probably whatever you have to have to build a new house.
also, i don’t know if now is a bad time to sell/move. if housing prices are down, yes, you will probably sell for less, but you should also be able to buy for less. i’m not exactly sure how jumping up in value relates (the more you are wanting to spend, the better deal you might get i would guess?). rates are low, though.
anyway, in talking to ross, it sounds like he probably isn’t interested in the hassles of adding on/tearing up part of his existing house when he can just buy a bigger that’s done. probably.
— Wolf | @
“but if he can get a loan for a much more expensive new house, he should be able to get the loan for the addition on top of the mortgage.”
That’s just not true. No bank would loan you more than 100% of the value of the asset.
— nic | @
it won’t be more than 100% of the asset once the addition is complete. people get loans all the time to build new houses. they give you the money chunks at a time (monthly usually) as the construction progresses. so that they never have more in it than is completed. and you don’t pay interest on more than you have completed.
— Wolf | @
You keep comparing apples and oranges. How much you can borrow for a new home is not related to the amount you can borrow on top of your current mortgage.
— nic | @
the guy sitting 10 feet from me right now is refinancing to do his addition, which is more than doubling the size of his house. i am doing the drawings for him. the bank will give him the money for his current house (to pay off the other bank in the refi) and then monthly installments for his additions as it is completed (like a new home, to pay the contractor for what is done). it all ends up as a single 30 year loan. and, trust me, he does not have the equity in his current house to cover doubling it. but the bank looks at his credit and the value of the final house (based on the value of the current house + the drawings of the addition (like a new house)) to make their decision.
— Wolf | @
Either way - it will probably make for some good blog posts.
— Eric | @
You should move to Arlington.
— fetzer | @
…and I just read the comments b/w nic and Wolf - don’t know what they are talking about but I think they are both right. If you are doing a simple refinance from an ARM to a 30-year, something we looked at doing, you have to have the cash on hand for the difference of the house. For example, if you bought house for 1 million, and it’s worth 900,000 now, and you did and ARM so you were only paying interest and not principle, you would need 100k in order to do the conversion, not including closing costs. That’s the short story. I think if you can prove you have the $$$ to do add-ons, some banks will give you the extra $$ to do it. But what the hell do i know, probably nothing? you should move to nortvirg
— fetzer | @
fetzer exists!
i don’t think either of us was talking about negative equity. his house is worth more than he owes on it. just not so much more to cover the cost of an addition.
— Wolf | @
ahhhhhh well look everyone at the new guy he’s an idiot. dont mind me.
— fetzer | @