My housing market BIG WIN. much happiness!

I have been trying to either re-finance or get a home equity loan on my house. I bought it 4 years ago for 38k. first i tried for a refinance but my house did not appraise for enough and it didnt happen. 

In the meantime I found out that appraisals for home equity lines of credit are not as strict as refinance ones so I applied for a line of credit.

I was just called, house was appraised at 92k! I am approved and close next mondayQ!

 

From 38 to 92 in four years, as a fellow forum member says... BIG WIN!

Nice buddy! Well done!!! Phone Post 3.0

That's cool and all, but what is the actual value of the home if you were to sell it?

I mean, do you now owe 92k for a home worth 40k? Phone Post 3.0

I bought a house five years ago for 760k and recently was offered over 1.3 million. But I live in Sydney aka new china Phone Post 3.0

Won't your property tax go up since your house appraised higher?

Yeah, i'm gonna wait until more educated financiers weigh in on this, but I'm not sure this is a good thing. What are you planning to use that money for? Phone Post 3.0

An appraisal is an OPINION of value.

Are you actually taking out an equity loan up to that amount?

wormiwalkinstik - That's cool and all, but what is the actual value of the home if you were to sell it?

I mean, do you now owe 92k for a home worth 40k? Phone Post 3.0


oh no. i currently owe 33 on it and am getting a loan for 11k (actually its a loan for 25k since that is the lowest they will do,  I am just going to pay 14k right back.

youarewhatiswrong - Yeah, i'm gonna wait until more educated financiers weigh in on this, but I'm not sure this is a good thing. What are you planning to use that money for? Phone Post 3.0
This Phone Post 3.0

Good for you PJ

:) Phone Post 3.0

I am glad that Jay is happy.....don't get my first post wrong. Good for you Jay. Phone Post 3.0

Passive Jay -
wormiwalkinstik - That's cool and all, but what is the actual value of the home if you were to sell it?

I mean, do you now owe 92k for a home worth 40k? Phone Post 3.0


oh no. i currently owe 33 on it and am getting a loan for 11k (actually its a loan for 25k since that is the lowest they will do,  I am just going to pay 14k right back.

Oh, ok. Owing 11k is a little different than owing 92k.

Just keep mindful. I'm being smothered by debt, its a terrible feeling Phone Post 3.0

Congrats dude, the median house price here is like 700k, its fucking crazy. Phone Post 3.0

Not smart at all my man. If your paying your bills on time it's not wise to go in more debt. I would focus on paying off the house quickly and then selling it for profit. People don't get rich taking out more money from bank as general rule of thumb.

erdoc1983 - Not smart at all my man. If your paying your bills on time it's not wise to go in more debt. I would focus on paying off the house quickly and then selling it for profit. People don't get rich taking out more money from bank as general rule of thumb.


i am converting creditcard debt into a much lower interest rate.



80% of the debt is from stuff like home depot card for buying stuff i needed for the house like insulation and dry wall.

Congrats man!

erdoc1983 - Not smart at all my man. If your paying your bills on time it's not wise to go in more debt. I would focus on paying off the house quickly and then selling it for profit. People don't get rich taking out more money from bank as general rule of thumb.

Virtually all rich people leverage debt.

Passive Jay -
erdoc1983 - Not smart at all my man. If your paying your bills on time it's not wise to go in more debt. I would focus on paying off the house quickly and then selling it for profit. People don't get rich taking out more money from bank as general rule of thumb.


i am converting creditcard debt into a much lower interest rate.



80% of the debt is from stuff like home depot card for buying stuff i needed for the house like insulation and dry wall.

Alright, you're doing it right. Phone Post 3.0

You're going to be buying more quadcopters. It's ok, we won't tell. Phone Post 3.0

OP

The home equity loans they give are sorta not really based on exact values.

But the Heloc's are a really good deal right now because interest rates are soo low.

You can either get a variable rate (changes to go higher if interest rates rise). Or fixed rate (prob like 5-7% but doesn't change)



They are a really really good idea right now cuz money soo cheap to borrow.

That's why the stock market has been sky rocketing past 2 years. Because it's soo cheap for business to put assets to get lending Phone Post 3.0