Advice on home remodeling financing
Hi guys... I'm a first time homeowner and I'd like some advice on remodeling.
I'd like to remodel my small kitchen and install hardwood floors next year. I'm estimating that it will cost about $11,000, so I'm budgeting for $15,000 to be on the safer side. Would you look at the numbers and give me your opinion on whether it's a good idea, if you think I can afford it, and what kind of financing options there might be?
Home purchase 10/04 - $126,000 (I got an AWESOME deal because they had fallen in love with another house and wanted to move quickly.)
Mortgage balance - $119,000
Estimated current market value - $155,000 (my estimate based on recent neighborhood comp sales)
My info:
Monthly net income - $3300
Cash savings - $8000
Saving/mo - $1000
Monthly expenses including mortgage - $2200
(My emergency fund savings goal is $12,000 and I should get there by the end of the year. Until the beginning of this year I was kind of blindly spending what I earned, but I've woken up and cracked down successfully.)
So, what do you think? I don't want to spend my emergency fund on the remodel. Home equity line?
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