NPR: Secured loans

juju

(I asked this question over on money matters but they are busy taking about thongs) not joking ladies

 

Anybody done a secured loan recently?

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We bought our house last year and by the skin of our teeth we are not upside down yet. bought for 337k. Smartly put 20% down as we thought.

We are thinking to doing some work on the house. Its two bedroom & one bath, which we plan on turning into 4 bed & 2 bath how you may ask? The attic is a cape already framed. We can finish the upstairs for about 15k - 20k. We met a real estate agent this is past weekend who receommended that we finish the upstairs as it would improve the value substantially.

We are thinking of moving on the next 18 month or so to be closer to my work.

Started to do some info on get some financing for this project, We do not qualify for the heloc as our value would be to low.

We have 25k in liquid savings, that we would rather not touch at the moment.

I was thinking of looking to a secured loan instead. I am not sure if we could even do it. 

Am I even nuts thinking about this?

  

  

pincushions

What about a builders loan?

Our friends just finished their upstairs (36k, game room, theatre room, bathroom and an office) and could not get anything but a builder's loan because the value of their brand new home had depreciated.

 

So they took out a builder's loan and when the project was finished they consolidated the builder's loan and their mortgage and their mortgage only went up by something like $112.00 per month.

juju

Thank you I will look into that