Quote:
Originally Posted by disneysteve
Jim, I think you misunderstood the question. OP wasn't asking if they should do the upgrades. He was asking how to pay for them.
Certainly, if you have the cash, pay for them upfront. Why pay interest on them if you don't have to?
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You are correct. I'm going to add the rough ins and changes, as these will cost thousands in the future. Just for a 1/2 bathroom rough into the basement-no water lines is $360.00! Laundry tub rough in is $310.
Things are adding up and I figure we might as well pay for these changes and upgrades up front. Then use the rest of the cash for the down payment.
I just want to make sure I understand the benefit of paying the upgrades/changes upfront to the builder-vs- rolling it into the mortgage. Should I put down a minimal of 20% to the loan and the rest into the upgrade/changes?
The only thing I see here is that we won't have as much into the equity. $130k-vs- $90k. However the benefit is we're borrowing less money.
Here is a
twist- Let's say I'm selling the home in 5-7 years, which am I better off:
Paying upfront for the changes or let it roll into the mortgage??