Question for the Money Doctors
Question submitted on Feb 11, 2019.
QuestionI recently acquired ownership of my mother’s home after going through probate proceedings. I took out a refi loan to buyout the other beneficiaries. After probate expenses, buyout and final estate debt, there was only minimal cash remaining from the loan to use to renovate the house. The house is valued at $227,000. I borrowed $65,000. The loan is less than a year old. What are my options (using the house as collateral) to secure up to an additional $40-50K for repairs and renovations to a house that was built in 1913.
Go to the bank and see if you qualify for an equity loan to pay for the repairs and renovations. As long as the proceeds are used for improvement of the home, the interest on the loan will continue to be deductible. In hindsight, you should have applied for a larger loan to cover these costs so you would not have to go through this process again and incur additional costs. Equity loans tend to have fluctuating interest rates and they are good for 10 years.
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