Financial Analysis: Pros and Cons of Refinancing and Using Home Equity for Garage Construction

Wednesday, 12 June 2024, 20:00

Sandi, a 70-year-old Ocean Shores resident, seeks counsel on Dave Ramsey's show about her plan to build a garage. With limited savings, she debates refinancing her mortgage to fund the project. The post delves into the potential benefits and risks of leveraging home equity for home improvements, highlighting key considerations for Sandi's situation.

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Financial Analysis: Refinancing Mortgage & Home Equity

Sandi, only having $900, considers using home equity for a garage.

Current Situation

The house, valued at $190,000 with a $136,000 mortgage, lacks a garage.

Decision Dilemma

Pros: Instant funds for garage construction.
Cons: Risk of increased debt burden at 70.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.