getting a personal loan for house remodeling

[thomasdan]

Hi everyone,

So after much discussion with my wife, we talked to our lender and my wife is able to qualify for a 300,000 mortage loan base on her income, no debt and 768 credit score. The monthly payments would be give or take around $2000 per month.

our take home together is 5500.

we have no debt, no kids. no payments of any sort. we rougly spend less than 1000 for monthly expenses, food, gas etc.

we are buying our first house and its a fixer upper but not a dump.

is it smart for me to take out a loan of 15,000 under my name since the house is under her name with me on the deed. we would be able to pay eventhing back withing a year.

plus we have a good amount of EF which we add every month and both have full time secure jobs that does 401k match, which we do

thoughts?

[disneysteve]

The monthly payments would be give or take around $2000 per month.

our take home together is 5500.

So the mortgage payment would be 36% of your income. That's way, way too high. No, I would not do that under any circumstances.

Put off buying for now (or buy something cheaper) and save up a bigger down payment so you can have a mortgage payment that is 25-28% of income.

[Augustine]

So the mortgage payment would be 36% of your income. That's way, way too high. No, I would not do that under any circumstances.

Put off buying for now (or buy something cheaper) and save up a bigger down payment so you can have a mortgage payment that is 25-28% of income.

Steve has a good point.

... and both have full time secure jobs...

I wouldn't really count on that very much when it comes to making such decisions. You don't want to put yourselves on the line only to discover that one or both of your jobs weren't so secure after all.

[feh]

So the mortgage payment would be 36% of your income. That's way, way too high. No, I would not do that under any circumstances.

+1

Just because the bank makes such an offer does not mean it's wise to accept.