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Want to increase prop value and remodel.

I am in the process of estimating a major remodel to my home, a second story add on and pool. This will increase my property value from $278k to $360k. I currently have about 33% debt, credit score 618 and have $103k worth of equity In my home. I have a fixed income of $4500/month. Should I Refi or Take a second mortgage? by MMasters22250 from Phoenix, Arizona. Apr 5th 2018 Reply


Depends on what your current interest rate is, what the interest rate would be on the new loan / renovation loan, and what the interest would be on a second loan. So we need to identify what the variation of costs and interest rates will be depending on which loan vehicle you choose to go with. If the interest rate is close to, or better on the renovation loan compared to you current mortgage, then the renovation loan is probably the smarter option than a second or third loan.. On second and third loans with the new tax plan the interest is no longer tax deductible and the interest rates on second or third loans are usually quite a bit higher compared to that on first loans. Please let me know if I can answer any other questions!

Apr 5th 2018
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Gregg Pomeroy (G.Pomeroy)
#51 ranked lender in Connecticut - 13 contributions

Hello, I would need to evaluate your current mortgage to see if refinancing is the best option but based on the details above you should qualify for a mortgage for what your looking to do. You would have a couple options available with rates starting somewhere in the mid 4% range with a 618 score. One thing I try to do for my customers is run their credit thru a credit score rescore program to see if I can help them get credit scores up quickly to help reduce rates and give them more loan options. This is something that I do totally for free. Even f I can get you up from a 618 to 620 it would save you a bit on the rates but either way even at a 618 you would still have some options. If you have any questions you are welcome to reach out to me at 203-299-2034, you can call or text that number day or night. Im available via email as well at: gpomeroy@boemortgage.com. My website is: www.thehomeloanspecialist.com

Apr 5th 2018
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