Alright, so my wife and I currently owe about $94k on our house, which is valued at $180k. We’ve been thinking about upgrading to a larger property because our current one is only on .40 acres. The new place we’re eyeing has a price tag of $80k. Lucky for us, we’re debt-free except for our monthly mortgage payment. Our plan is to sell our current house to cover the borrowed amount when we make the move.
We’ve done our homework and tried approaching various lenders, but no one was willing to approve us for a loan because the new property needs a new roof. It felt like hitting a dead end until we stumbled upon Upstart HELOC. They pre-approved us for a line of credit ranging from $85k to $110k at an interest rate of 6.5%. And let me tell you, we’ve got pretty good credit scores.
Here’s the game plan: We go ahead with the HELOC loan, snag the 10-acre property, use some of our savings to fix the roof and spruce up the interiors, list our current house for sale, and use the proceeds to pay down a chunk of the HELOC debt. Seems like a solid plan, right? But hey, I’m all ears for any advice or experiences you folks might have in this area. Is Upstart HELOC the real deal, or are there better alternatives out there? We thought about going for a renovation loan, but the thought of hiring contractors and their hefty charges is a bit off-putting.
We’re just looking for some real-world advice here, so please, no automated responses. If you’ve been through something similar or know someone who has, your insights would be gold to us. Hit me up with any follow-up questions or thoughts you might have. Let’s figure this out together!