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Should I take out a 2nd Mortgage to Build a Pool?

I want to quickly appreciate the value of my home. I am 46 year old, 698 credit score, prop value 670,000 and somewhere about $$80k in equity and 20/80 debt v income. Would taking out a second mortgage and building a pool appreciate the value of my home? I am looking to sell in December and want to see a 15-12% increase. by Bretttimmons343793 from Vallejo, California. Mar 7th 2018 Reply


Barry Harris (bhhomeloan@gmail.com)
#1041 ranked lender in California - 9 contributions

Yes, your home will appreciate if you were to build a quality pool in your yard, but you won't get back the amount you put into the pool. If you're looking to sell in the next 12 months, you would be better off getting your house in tip-top shape so you can maximize your future sales price.

Mar 7th 2018
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

The short answer is that if you build a pool, you never get dollar for dollar in return.. Example: If you spend $50,000, you might get $20,000 in value. so, yes.. it will increase your value, but your equity will take a hit by $30K.. The other problem is that if you need to take out a loan to do this, you don't have sufficient equity.. most lenders want the Combined Loan to Value (CLTV) to be at or below 80%.. you are currently at 88% ($590K owed divided by $670K in value = 88% LTV). If you want to maximize your value, it's best to grab a "Better Homes & Garden" magazine, and try to paint, remodel your home to look like the showcase homes' in the magazine.. Going with the latest trends seems to get you the most and this can be done by painting and decorating.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 7th 2018
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Corey Vandenberg (Coreyv)
#66 ranked lender in Indiana - 27 contributions

A Homestyle renovation loan can help you out! Affectionately known as the "pool loan," it allows for luxury items like a pool, and it allows for a future appraisal, allowing you to be able to know ahead of time if your investment will payoff or not. And that appraisal can be used to help a buyer recognize your value, especially when you might sell soon! Give me a call and I will put you in touch with a great loan officer in CA!

Mar 8th 2018
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