I am a solvent, stable, well-employed, credit-worthy individual. I bought a house 7 years ago which has more than doubled in value due to the market I'm in and of course, location-location-location. I have about $10k of debt (credit cards, automobile). To further increase the value of my home, I want to renovate my kitchen and bathrooms to the tune of about $16,000. Here's my big question: I've applied and been approved for a $30k home equity loan to finance the renovations and pay off the auto and credit card debt. Am I turning down the wrong road? Am I asking for trouble? I really, really hate debt. My home mortgage is [was] low and now I'm adding back another $30k.
I opted for the home equity loan vs. line of credit so that I got a fixed interested rate, which was important to me. I will pay off the home equity loan long before the term is up.
The return on the improvements will definitely more than double my investment in upgrading. Is this the right thing to do?
2007-08-08
03:21:38
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