Going Overboard with Home Renovations - Money Pit Revisited

lright, you and your family have spotted the house youabout all the upgrades in your house and how great it
and your family would like to grow old in. Thelooks, blah blah blah. Your mortgage company goes on
community is great, the people are great, and the priceto tell you about how much value you have to have in
was just right. Now like the average home owners inyour property and due to your low loan-to-value ratio
this situation you start doing small alterations to yourthey might let you cash-out some amount of that
house. A little paint in a few rooms, maybe somehome equity. No matter whether you attempt to
wallpaper, new marble in this part of the house,cash-out equity, your trouble comes when the
silestone in that room, a light fixture here a fixturemortgage company goes to order an house appraisal.
there. Finally you are satisfied with your now improvedThe home appraiser comes out and inspects your
house.house and heads back to his office to write up his
Some time passes and you make a decision that youreport. After reviewing the information he see that
wish to refinance for whatever reason. Let’sthere is a problem, your house is huge . . . TOO great
assume you decided you could get a much betterfor your area.
interest rate.You inform your mortgage company