Profile picture for roses_rem

I am trying to find best mortgage for my situation....

I have a house and my parents also have a house. We owe a total of 90,000 between the two with one being valued at 142,500 and the other being valued at 135,000. The house that is valued at 142,500 we would like to add a second story that would cost us 90,000. We are trying to figure out the best situation for us....
  • June 07 2011 - Beverly
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Answers (5)

If you are veteran or current military you can cash out the home to 95%.
  • June 08 2011
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Profile picture for roses_rem

That would be fine. I had an appraiser who is willing to appraise the house at 200,000 because he knows the value will be there and house appraises at 180000 now but that is what the price was on here.... Taking the 80% out of that to not get a PMI would be 160,000 which would be wonderful and can pay off everything as we will have other funds available. I was just worried about how the paper trail would look and tax purposes. Do appraisels just go for mortgage or does that get sent for property taxes as well. The twp just appraised all homes last year....

  • June 07 2011
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Getting rid of both mortgages and finding another 90k to do the renovation is going to be next to impossible with one mortgage.  The easiest thing to do would be to concentrate on the house that is worth $142,500.  You could do a cash out refinance to 85% of the value provided that credit and income check out.  That would give you about $121,000.  Hopefully that can pay off the mortgage on the home and leave you with the necessary funds to do the renovation.
  • June 07 2011
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Profile picture for roses_rem
We will own both homes but I will be moving into their home and allowing my sister to live in mine. I would like to not have two mortgages, maybe just a second equity mortgage if need be. The value of the same style home on our same street more then doubled when the same contractor did their second story addition.
  • June 07 2011
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Profile picture for wetdawgs
A few more details would be helpful.

Do you and your parents wish to continue to own two homes, or are you proposing combining households?
  • June 07 2011
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