Where should I get the $$$? (financial advice pls)

[JHZR2]

Are you in the middle of the job? Is it really $3k or is it really $30k, which seems to me to be the going rate for full kitchen renovations...

Given your comments about paying for insurance, pay cuts/freezes, etc., it may be most prudent to put off the kitchen work if you can, and then pay cash when things settle.

Sounds like you have a good grasp of the big picture, but right now seems liek a stressful time to do this, why burden yourself with more hassle and stress?

 

[rjundi]

TD Bank for example has a variable rate loan for prime + 1% with $99 origination fee. IF you end really pay this off soon a higher interest rate/little originaion makes a lot more sense than mucking up your mortgage etc with the hassle and fees involved.

Pop_Rivit gives decent/simple advice without any attitude here. He can comes across abrasive but I think the previous posters did on this thread did that.

Not sure how far your kitchen reno is. But it seems to always take more money. For example mine was required due to a structural issue below kitchen. However a ceiling beam to be raised was found to be sagging 4" once they removed the mudding. It cost an additional $5500 for engineer, shoring and replacement beam/anchors.

 

[dwcopple]

Originally Posted By: JHZR2
Are you in the middle of the job? Is it really $3k or is it really $30k, which seems to me to be the going rate for full kitchen renovations...
Since inquiring minds must know. I think renovation can mean many things. What we are doing is knocking out a wall and having a header installed and where the old wall is will now be an island with the stove. The builder's son played on my basketball team that I coached the last two years and he has become a good friend of our family. He is doing the work for $1400. That includes: removing the old wall and installing a LVL header, demo'ing the old cabinets and modifying them into counter top height and adding a countertop there and replacing the old counters on the other existing cabinets, modifying/lengthening the end of the old cabinet run to accept a new dishwasher, and installing a soffit with canister lighting and a vent fan over the new island. The other money I need will go towards materials: Countertop material, trim, appliances, sink, possible flooring. I am very good at DIY and will be assisting as well after work. It is a deal we cannot really pass up. He has the time this week to do it as the weather sucks and his other jobs are building outdoors, i.e. new construction.

 

[Vikas]

You are indeed trying to take the loan for $3K! I am speechless :-( You do not come across of the type who would even be thinking of doing something like that. There might be few individuals who visit BITOG that may have that mindset but your history of posting indicates that you are NOT of that type. People who need this kind of money at a short notice end up taking payday loans! All of the options that you have listed will take weeks for closing i.e. even after paying insanely stupid loan origination fee, you still will not get the money today or tomorrow.

This feels like a train wreck in progress :-( Please, just forget about the "once in a lifetime deal, available only today and will be gone tomorrow!" business.

 

[dwcopple]

not to worry. I just got the $$$ out of the insurance policy. No fees, e-transferred to my savings acct. Done deal. It'll be back in there by August at the latest!

I'll make a thread for the kitchen project as it progresses.

 

[JHZR2]

Originally Posted By: dwcopple
I'll make a thread for the kitchen project as it progresses.


Love to see it!

 

[Mr Nice]

Me too. Just make sure its like one of those IKEA kitchen DIY videos you see on YouTube.


Vikas,

Why train wreck ????

 

[Vikas]

You don't think getting $3K loan and even considering to pay $400 as loan origination fee for it shows prudent financial judgement? Under what circumstances would *you* do it? I suspect it would have to be dire (verge of being evicted from the living quarters or having no dime in the pocket for the next meal) and definitely NOT something like adding new deck to your house closing the deal on a great mint condition convertible.

Obviously, OP managed to find another source for the money and it did not come to this, so it is all well now.

 

[Mr Nice]

I understand, but no need to be so harsh on the OP....

 

[javacontour]

If you are looking to solve ONE problem and were not planning to stay in the home for more than 3 years, avoiding the refi was the way to go.

However, if the OP were planning to stay another decade or until payoff, it may have made sense to address the issue of the interest rate, and he could have saved over 7K in interest over the 15 years if not more.

Now paying 2K to save 7K may not be a smart play. But there may be other loan options out there. Not to mention any additional savings if he were able to pre-pay by devoting any saved P&I towards additional payments on the mortgage.

 

[Doog]

Originally Posted By: dwcopple

I apologize that I work for the Government and that the majority of the public thinks we are overpaid and have Cadillac insurance plans even though I took a paycut for the past two years and on top of that, come July I have to find a way to pay for 20% of my $16,430 family insurance plan too. Thanks voters, you truly are ignorant.


Get a job in the private sector....I pay 100% of my $26,000 family insurance plan.

 

[Pop_Rivit]

Originally Posted By: dwcopple
Pop, you are the last person I'd take advice from, no offense, but your pompous attitude you walk around with on this forum sickens me. Congratulations on your own success, really, but not everyone makes the bank that you do, though you seem to scoff at that idea.

That said, I have a life insurance policy that was started for me by my parents when I was born through Thrivent. It has a nice cash value that is accessible at any time and can be used like a bank account of sorts. I spoke with my advisor there and he said that is the wisest choice especially if I plan on funding it back within a few months anyways. So it appears right now that is the route we are taking.


Your original post never mentioned that you were going to fund the project from a life insurance policy. If you would have mentioned that as a possibility you may have gotten different answers.

I scoff at that idea because anyone is able to do what I've done. It takes hard work, self discipline and a willingness to listen to people who have actually achieved financial success, even when they don't tell you what you want to hear.

Originally Posted By: dwcopple
I apologize that I work for the Government and that the majority of the public thinks we are overpaid and have Cadillac insurance plans even though I took a paycut for the past two years and on top of that, come July I have to find a way to pay for 20% of my $16,430 family insurance plan too. Thanks voters, you truly are ignorant.


If you're content with your government paycheck, then by all means continue doing what you're doing. If you actually want to change and get paid based upon your skills and the amount of risk you take, there are lots of opportunities, especially if you have the desire and self discipline to start your own business. Then you don't have to be at the mercy of those "ignorant voters".

 

[PandaBear]

Originally Posted By: Pop_Rivit
I scoff at that idea because anyone is able to do what I've done. It takes hard work, self discipline and a willingness to listen to people who have actually achieved financial success, even when they don't tell you what you want to hear.


While I agree in principle that you work hard and "made it", I would not say doing exactly what you do will repeat the result for everyone. You forgot that a lot of good things happened because of ... luck. You somehow always forgot about this when you mention everything is possible when you work hard and using yourself as an example.

 

[Mr Nice]

I thought everything was sunshine and roses with O-care.
You know... very low cost insurance and healthcare to all Americans.

Pop isn't a bad guy... its just that very educated and affluent folks think and act differently compared to the average Joe.

 

[dwcopple]

Originally Posted By: Doog
Get a job in the private sector....I pay 100% of my $26,000 family insurance plan.
Then you must get a helluva salary to be able to do so. Enjoy!

 

[rjundi]

Originally Posted By: Pop_Rivit


I scoff at that idea because anyone is able to do what I've done. It takes hard work, self discipline and a willingness to listen to people who have actually achieved financial success, even when they don't tell you what you want to hear.



There is an element of luck also in what you did. Things out of folks control(eg medical conditions/bills/work loss) happen along the way.

My luck in financial success was listening to a really attractive 30 year old intelligent woman I worked with at age 21. She said buy a house which I did pre bubble in low market clueless and was able to sell at peak, rent(could not find a suitable place) and then buy at crash again.