Financing a remodel on a vacation home in a different state
Terry,
We have a lake house in Wisconsin (we live in Illinois) and it needs some remodeling. We have about 30,000 for part of the remodel, but feel we will need at least 40,000 more. Is a HELOC the best way to go? Should we pursue the loan in Illinois or in Wisconsin? We have mortgages on our primary and the vacation house. Our credit is excellent. Thanks for any advice you can give.
Terry Says
I’m not in favor of a HELOC because inflation should make interest rates rise. If you’re pushing the financial boundaries by not being able to finance these repairs/remodel, then you should refinance either home at today’s low rates. You’ll likely get a lower rate on your residence — but the interest on the money you pull out will not be deductible if used to repair the other home.
The obvious question is: “Why not do a two-part remodel?? Half now, and half when you’ve managed to accumulate most of the rest of the money needed?”
