Hi all, I need some advice. I want to renovate my home that will add about 450 sq. feet (going from 3 bed 2 bath to 4 bed 3 bath) to my existing 1300 sq ft home. The cost of renovation is about $250k.
My current financial position: I have emergency funds in the form of cash saved up for 8-10 months. Besides that, I have about 250k in my US Stock Portfolio. The portfolio is currently red i.e. short-term losses.
The HELOC rate that I'm currently getting is 6% variable on a 30 year term.
Question is: How should I finance my renovation in a way that maximizes from a return perspective? Option 1: HELOC 100% Option 2: Sell stock portfolio 100% Option 3: Hybrid
Any input on the pros and cons of either option will be helpful.
Additional details: Current Market Value of the house: $1.3M Outstanding loan balance: $500k Current home equity: $800k Area: San Francisco Bay Area, US.
Submitted February 28, 2023 at 12:21AM by idudepixel https://ift.tt/qbdeY3J
