| Mortgage for renovating!! |
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betty
New Member
Cash: $ 1.10
Posts: 5
Joined: 05 Sep 2016
Location: Canada
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| Mortgage for renovating!! |
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Hi all,
I’m planning to renovate my present home. Currently, we just have 2 bedrooms, and the kitchen is also too small, so will extend the kitchen and include another room as well. We have a lot of space in our backyard, and it was my dream to have a pool at my place, so planning to have swimming pool as well. I did my initial calculations, and feel that constructing a pool will be really costly. All in all, it’s going to cost me a huge amount, I’m sure about this. I don’t have much savings to meet this expenses, so thinking of taking a mortgage. I’m trying to apply for a construction mortgage loan. My friend suggested this, http://www.canadamortgagedirect.com/mortgage-solutions/construction-loans/ I wanted to know if the rates are ok? Since I have never taken any mortgage, don’t know about the rates and how things work. Need your advice and help with this. Please help. Also, I wanted to know if construction loans can be taken for renovating homes. Thanks for helping.
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Mon Sep 05, 2016 6:27 am |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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quote:
so will extend the kitchen and include another room as well. We have a lot of space in our backyard, and it was my dream to have a pool at my place, so planning to have swimming pool as well. I did my initial calculations, and feel that constructing a pool will be really costly.
Do you have a first mortgage on the existing house? If so, that company might be a good choice for a construction loan. And I don't think that you'll have a problem getting a construction loan (assuming that your credit is sound and that your income would support the payments).
But changing the as-built foot-print of a house can detract from its value - there are usually strange traffic patterns involved. And the settling-aging issues from the old section to the new section, roof interface issues, etc. And the old electric and the new electric service, the old/new plumbing, etc. It's pretty easy to spend $100,000 and end up adding very little value to the property. Personally, I never add to my houses, instead I find a new house that meets my requirements, and sell/buy. (That way I receive the full market value of my old house - and I don't have the big loss of spending $100,000 and only adding $20K to $50K to the house value).
Pool. An in-ground or an above ground? Many of the in-ground pools in Canada are sheltered, ie inside a building. An outside pool needs winterizing, a cover to protect from snow, rain, wind, tree branches. The the spring start-up - the chemical shocking, cleaning partial refilling - all in all the maintenance costs several thousand dollars per year. Again - this affects the property value. If you tried to sell it, you'd find very few buyers, almost no home owner in Canada wants a pool.
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Mon Sep 05, 2016 5:10 pm |
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