This and interest rates are what really scare me. I’m a young(ish) first time homeowner. Bought a year before covid thankfully. Between the low value during the time and buying a fixer upper foreclosure, I got a great deal. Had a $1,700 mortgage payment. The downside to that was I had to pay all closing costs and sunk pretty much my entire savings to that and renovating the house, and turning the basement into an apartment with separate entrance. Doing 90% of the work myself. Refinanced during covid and got a lower interest rate plus the PMI taken off, lowering my monthly payment to $1,350 a month. Which saved me because I didn’t know how I was going to make my payments. It was during lockdown and I wasn't working either of my jobs. But since my main job was still paying me I didn’t not qualify for the weekly payments for unemployment. That didn’t last long. Next the personal property taxes rose like crazy and then the insurance. Bringing my monthly payment back up to $1,800 a month, more than I was originally paying! After I refinanced, I got approved for a HELOC. I needed it to help the cost of renovations, and honestly to also buy some gold and silver because I was afraid of what was coming. But I needed it to stay afloat. The downside to that is it’s a variable interest rate, which has been a high 9% since I got it. Which is based off it being 1% higher than what the market rate is. I needed to rent my basement out to survive, but needed the HELOC to finish the renovations to be able to do that. Now that I’ve had a renter in there it’s been helping a lot, and I probably couldn’t survive without it. But, what I’m afraid of is in the future, if (when) shit starts hitting the fan and the interest skyrockets because of it. I just hope I’ll be able to keep up with the payments and not lose my house that I’ve put so much money, time, and blood, sweat, and tears into 😔. Pray for me and the many others out there like me who don’t have much of an emergency fund to fall back on.
If you don’t need the HELOC anymore you can always refinance it into your mortgage to keep the interest rate fixed. That is if you want to go through another refinance. Also your property will appraise higher with the rental finished. Might cost you a bit of money on the front end but you’ll avoid monthly rate increases. Or you could hold tight and wait for Trump to get in. I think interest rates will drop after that. No matter what don’t worry. There’s many options. Will pray for you 🙏🏼
This and interest rates are what really scare me. I’m a young(ish) first time homeowner. Bought a year before covid thankfully. Between the low value during the time and buying a fixer upper foreclosure, I got a great deal. Had a $1,700 mortgage payment. The downside to that was I had to pay all closing costs and sunk pretty much my entire savings to that and renovating the house, and turning the basement into an apartment with separate entrance. Doing 90% of the work myself. Refinanced during covid and got a lower interest rate plus the PMI taken off, lowering my monthly payment to $1,350 a month. Which saved me because I didn’t know how I was going to make my payments. It was during lockdown and I wasn't working either of my jobs. But since my main job was still paying me I didn’t not qualify for the weekly payments for unemployment. That didn’t last long. Next the personal property taxes rose like crazy and then the insurance. Bringing my monthly payment back up to $1,800 a month, more than I was originally paying! After I refinanced, I got approved for a HELOC. I needed it to help the cost of renovations, and honestly to also buy some gold and silver because I was afraid of what was coming. But I needed it to stay afloat. The downside to that is it’s a variable interest rate, which has been a high 9% since I got it. Which is based off it being 1% higher than what the market rate is. I needed to rent my basement out to survive, but needed the HELOC to finish the renovations to be able to do that. Now that I’ve had a renter in there it’s been helping a lot, and I probably couldn’t survive without it. But, what I’m afraid of is in the future, if (when) shit starts hitting the fan and the interest skyrockets because of it. I just hope I’ll be able to keep up with the payments and not lose my house that I’ve put so much money, time, and blood, sweat, and tears into 😔. Pray for me and the many others out there like me who don’t have much of an emergency fund to fall back on.
If you don’t need the HELOC anymore you can always refinance it into your mortgage to keep the interest rate fixed. That is if you want to go through another refinance. Also your property will appraise higher with the rental finished. Might cost you a bit of money on the front end but you’ll avoid monthly rate increases. Or you could hold tight and wait for Trump to get in. I think interest rates will drop after that. No matter what don’t worry. There’s many options. Will pray for you 🙏🏼