I have some remodeling to do in addition to fixing some water damage. . And there are some other domicile upgrades I want/need to get done.

In general, with regards to home equity loans...
Do I :

Borrow as much as I need?

Borrow as much as I can get?


I have some leftover divorce debt (one CC) and the interest on it is about twice what I’d pay on home equity.
One kid is leaving for the AF this summer, two girls left at home.
Truck and suburban are mine. One motorcycle is still owed on....
I still have a few cows left, but I hate to sell the whole factory, plus there are tax issues involved in selling out completely.

I don’t want more debt, but I am at a point that I have to do something.

IMHO..If you do it, take out only what you need to fix things up and pay off the high interest CC / debt.

I took 100K out to fix up my house but I have 700K plus equity in my home.

Remember, I'm just some guy on the internet

Interest on home equity loans is no longer deductible, to my understanding... if that is a consideration.

You can do both by taking out an equity line of credit. They'll approve the amount you can get based on your equity (as much as you can get), and then you can write checks to borrow against that line (as much as you need).

quote:

The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.

Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements.

Before you borrow money, you should read Dave Ramsey's The Total Money Makeover and Suze Orman's The Money Class.

It'll really help put money, interest, and borrowing into perspective, and give you a plan to get out of debt.

Not saying that you shouldn't borrow the money, but you should have a plan on how to pay it back and an idea of exactly what it's costing you to do it.

Nothing wrong with using home equity WISELY. If you tap into it then rack up the CC’s again as ‘emergencies’ come up, it’s another way to drown yourself.

There may be fees setting up a home equity line of credit.

I would second the idea of a home line of credit. That way the money is available when you need it but you are not paying interest on money you are not using.

Jim

I’m not drowning in debt right now, but there are some things I’d like to tidy up. I’m not trying to “borrow myself rich” either.

The LOC thing might be something to look into. I hadn’t had that suggested before.

And yes, the WISELY part is why I’m so hesitant about the entire process. I detest paying interest, but I’ve had to learn to put up with it the last few years.

I would look at things I could sell the pay off the debt.

"one motorcycle still owed on" Sell. debt gone
How many others do you have?
Sell one or two of them, maybe debt gone.

Keep one rig, sell the other.

Debt is debt.

So get yourself free as soon as possible.

Just a different perspective.

^^^^
Yes, I’m still going through the thinning of assets.
Bear in mind the bikes aren’t just toys, I ride nearly every day. Greatly reduces the fuel bill.
(But I realize I don’t NEED two)
And with three kids, a spare vehicle with doors comes in handy. Gonna have another driver here before long also.
But...yes
Monthly recurring costs, maintenance on stuff that could go...
Etc....all that needs to be considered.

Really what I need is a sugar momma willing to support me in the manner to which I have become accustomed.

The loan agent at my bank suggested applying for an amount just under the amount that would trigger a required home inspection and assessment. That simplified and sped up the process and saved some cost to boot. That was much more than what I needed so that's what I did.

I paid it off years ago but still keep the line of credit, should I ever need it. it cost nothing if unused and If needed again, a quick online transfer make the money available.

I just did an equity line of credit. I don't care the interest isn't deductible, it will be miniscule in the grand scheme of things. I also don't care if the interest is a point higher than for a cash out refi...because the cash out refi would put my entire home loan a point higher than it is now. I ain't payin' an extra point on 200k for 30 years to save a point on 20k for a few years. I also like you can just take what you need as you need it.

OTOH, if refinancing your entire loan would make sense and lower your rate with the cash out...that might be the better route.