Close

See current mortgage rates on Zillow Mortgage Marketplace

Remodel financing advice needed!

Profile picture for Arthur68
Been looking at Remodeling-to Refinance loans and getting discouraged by the fees and the idea of constant inspections to get money periodically, etc. We have about $140k of our own money to put toward an approx. $250k remodel of our worst-house-in-good-neighborhood home. We have great credit and almost no CC debt.

Recently, we've started thinking about using credit cards to finance some of the rest and refinancing with a cash out when we're done. We don't have enough equity (20% right now) to get a HELOC or HE loan. OR doing as much as we can then going for a HELOC  to finish based on a (hopefully) larger amount of equity.

Looking for some advice from Lenders or anyone with knowledge of using cards to float until a refinance - will the amount of debt affect the rate (even though it was used for the house?) 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0Yes

February 16 - US
 Share
 RSS

Replies (1)

Profile picture for shapiroamg

While it is perfectly acceptable to use credit cards, I would think that your score will drop from having large balances. If your score goes low enough you might find that you cant refinance or can but at a higher rate than the current offered.
I can understand the hesitation with the renovation loan but I think in this case it may be better to take the renovation loan with the contigencies/inspections/payout schedule and then refinance after the renovation is complete if it makes sense with the rates at that point in time.
Going the cc route could be a major issue.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.

0Yes

February 16
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Have a question? Ask it here.

What's this?
Close

By starting a discussion, you can expect more of an interactive, back-and-forth experience where the conversation can go in many different directions.

Or start a discussion
Related Discussions
Profile picture for user103058
DiscussionI purchased with cash from my mother - what are my options for self employed?
  • Last reply by user103058
  • 23 hours ago
Profile picture for Seth Robbins
DiscussionInvestment property and would like to borrow from it to purchase another property.
  • Last reply by Seth Robbins
  • April 11
Profile picture for user598218
DiscussionInvestment Property to Refinance Student Loans
  • Last reply by user598218
  • March 18
Profile picture for warren w1
DiscussionIs it still possible to get an equity loan to pay for a pool?
  • Last reply by warren w1
  • March 12
Profile picture for shapiroamg
DiscussionRemodel financing advice needed!
  • Last reply by shapiroamg
  • February 16
Compare Mortgage Rates

See all mortgage rates

Be A Good Neighbor

Zillow® Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy