We are planning to stay in our home to grow our young family, anticipating to keep us here another 15+ years. We would like to build an addition off our back area creating a 200-250sq foot sunroom.
I’m trying to understand how best to fund this. I am expecting the cost to be $50-$80k for what we want. That would completely deplete our emergency fund. We have around $350 k in equity in our home.
Current debt is $185k mortgage on house at 3%, $32k on wife’s car at 5.5%.
Gross household income: $275k/year excluding average $30k/year bonus’s but unreliable.
I feel we are on track for tax advantaged accounts for retirement (about $1.3M). I have about $200k in brokerage which I am also targeting for retirement if I don’t need in a pinch.
Would a HELOC be a good option? I’d prefer not to dip into brokerage or emergency but we would like to get this project completed within the next year.
I feel we save for future appropriately for our age:
Max both 401ks, both Backdoor roths, max family HSA, and put money into childrens 529 each month.
I am not quite clear if my situation makes sense for a HELOC. I feel using some of my equity to make our home the long term nest is desired, but unfamiliar with the additional line of credit. Anyone been in a similar situation or can provide their opinion?
Your time and thoughts are appreciated.
I’m trying to understand how best to fund this. I am expecting the cost to be $50-$80k for what we want. That would completely deplete our emergency fund. We have around $350 k in equity in our home.
Current debt is $185k mortgage on house at 3%, $32k on wife’s car at 5.5%.
Gross household income: $275k/year excluding average $30k/year bonus’s but unreliable.
I feel we are on track for tax advantaged accounts for retirement (about $1.3M). I have about $200k in brokerage which I am also targeting for retirement if I don’t need in a pinch.
Would a HELOC be a good option? I’d prefer not to dip into brokerage or emergency but we would like to get this project completed within the next year.
I feel we save for future appropriately for our age:
Max both 401ks, both Backdoor roths, max family HSA, and put money into childrens 529 each month.
I am not quite clear if my situation makes sense for a HELOC. I feel using some of my equity to make our home the long term nest is desired, but unfamiliar with the additional line of credit. Anyone been in a similar situation or can provide their opinion?
Your time and thoughts are appreciated.
Statistics: Posted by DrewDogs63 — Thu Aug 08, 2024 9:14 pm — Replies 0 — Views 139