How much of a home equity loan will we be able to get?
In 2001 my fiance bought our 3 bedroom ranch house for $ 80,000. At that time, our house appraised at $ 84,000. We have made improvements such as water softener & purifier(2001), new roof (2003), new tub surround & toilet (2004), new windows in master bedroom (2006), new carpet & tile throughout (2006), water proofed the basement (2010). We now owe around $ 55-60,000. We want to add onto the house, expand the kitchen/dining room, add a full bath, & add a bedroom. One contractor thinks it will cost $ 50-60,000 to do this. He makes around $ 55,000/yr. How much of a home equity loan do you think we’ll be able to get? If we can get a home equity loan, will we be able to keep it at 5% (which is the interest rate on our 15yr home mortgage)? If you don’t think we could get that much for an equity loan, is there some other loan we may be able to get?