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Home Equity Loan

 
Knowlesstak
(@knowlesstak)
Advanced Member

Good day,

 

We are on STX and will be closing on our house soon. Waiting on the appraisal to come back, but we are expediting to have significant equity on the house since we got a great price for the house. In addition we did a conventional loan with the 20% down. 

We are going to need a home equity loan to add solar/batteries, split units, new windows, remodel the kitchen, and add a pool (I know it will take forever.)

The house is 100% livable now, but we do want to upgrade it 

 

Anyone have an experience with a home equity loan, or a lender who will do a refinance without doing a waiting period. 

Thanks

Quote
Topic starter Posted : September 22, 2022 9:06 pm
VIpirate
(@VIpirate)
Advanced Member

My strong feeling is you're going to have to wait at least a year to get a new lender to entertain the idea of a HELOC or a refinance.  Also, seems to be a bit smarter to settle in and then decide priorities and knock out the upgrades over time with cash rather than getting over leveraged on the house and paying a bunch of new closing costs and higher interest rates with a refi or HELOC. 

If the upgrades are so you can generate additional rental income then perhaps it's a different story, as you're immediately bringing in revenue from the upgrades.  

When I looked into solar on my home, it was a 10-year payback ignoring time value of money.  I know a lot of people swear by solar, but at least in my case, the numbers didn't pencil out.   

Anyway congrats on the new place and best of luck. 

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Posted : September 29, 2022 3:06 pm
vicanuck
(@vicanuck)
Expert
Posted by: @VIpirate

When I looked into solar on my home, it was a 10-year payback ignoring time value of money.

Was that on your home in the VI? My 30 panel 7.5 Kw system paid itself off in just under 5 years. Since installation, I've never paid for electricity once and always get a credit every month. We installed AC just to burn off some of the credits. Not only that, but, having solar adds a lot of value to your home ands puts it above non-solar homes for potential homebuyers. It was the best investment I've ever made.

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Posted : September 30, 2022 8:07 am
VIpirate
(@VIpirate)
Advanced Member

@vicanuck 

Yes this was for my home in STT.  The cost for solar, power wall, etc was about $75K and based on my historical WAPA bills, that's more than a 10-year payback actually closer to 12-15 years payback at current rates ignoring time value of money. 

Since I'm not selling anytime soon, I don't really care if it adds any value to the house and I suspect a hurricane will come through within the next 10-years and damage the system and technology will improve over time.  I'm not against solar, it just doesn't make sense in my case.   

5 bedroom home, fully electric and AC in every room. I have a back-up 40K generator when WAPA goes out, but suspect I could get by with 20K generator.   

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Posted : September 30, 2022 11:28 am
vicanuck
(@vicanuck)
Expert

@VIpirate 

Ah yes...we didn't go with batteries back then because they were about 3X the price they are now. Our system was about $36K minus the federal rebate. We have a 15Kw diesel that runs everything. Plus, we're on the original 1:1 net metering scheme for 25 years which is the most generous in N. America. I see your reasoning completely now.

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Posted : September 30, 2022 12:45 pm
VIpirate liked
rewired
(@rewired)
Advanced Member

@knowlesstak

 

The VI Energy Office just announced a 15 year 1%apr loan that you can get for up to $30k for solar installations.

https://viconsortium.com/vi-government/virgin-islands-energy-office-program-providing-low-interest-loans-to-homeowners-to-install-solar-power-and-battery-storage-begins-today-applications-available-online

That may be a better option than an equity loan for the solar piece.

We have a smaller (3 kw, 14 panel) solar system with 21 kWh of storage. We usually get a small credit on our bill that helps it when company comes. Like @vicanuck, we're on the 'original' 1:1 net metering plan. 

Depending on your power needs, you may be able to cover your solar with the loan for about $250/month plus the new net meeting fee.

Depending on your remodel priorities, you may be able to 'cash flow' the projects that give you the most bang for your buck in the beginning and then get an equity line later for larger projects you think you'll hire out.

When you're ready for your windows and doors, I've got a guy in Florida that saved me a couple thousand per door off local prices for Miami Dade HVWZ hurricane rated doors.

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Posted : October 1, 2022 4:33 pm
vicanuck liked
Knowlesstak
(@knowlesstak)
Advanced Member

@rewired 

Thanks for the advice. I saw the solar also and it is a much better option. We should close in 1-2 weeks which would give us around a week before the deadline to submit for the solar. 

Amazingly we are looking to close in under 30 days. 

Thanks for the insight on the doors and windows. Will be sending you a message later down the road on that if you don’t mind. 

Thanks again. 

ReplyQuote
Topic starter Posted : October 2, 2022 8:38 am
rewired liked
vicanuck
(@vicanuck)
Expert
Posted by: @knowlesstak

Amazingly we are looking to close in under 30 days.

Closing in 30 days? In the VI? I wish you the best of luck on that!

Let us know how it turns out!!!

ReplyQuote
Posted : October 3, 2022 8:30 am
Knowlesstak
(@knowlesstak)
Advanced Member

@vicanuck 

i know. I was shocked as well. Appraisal was done within a week of the contract, and title and survey done within 2 weeks. Insurance already being done and they said closing within 30 days. Welcome to the twilight zone!

ReplyQuote
Topic starter Posted : October 3, 2022 8:19 pm
vicanuck liked
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