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Should I pay off my house and borrow money to remodel, or should I just remodel with my cash?

I'd like to know which case give the lender less power on a house/ property?

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Well...you will likely pay a higher interest rate for a remodel loan than you did for your mortgage....so I would remodel with the cash if your house needs it.

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that's exactly what I was thinking
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wickedpissah

It depends on the interest rate of your mortgage compared to the potential interest rate of the home improvement loan.
If the rate on your mortgage is lower than you can get a new loan for, then keep the mrtgage and use your cash to remodel.
If you can find a home improvement or home equity loan with a lower interest rate than your mortgage has, then pay off the mortgage and take the new loan with the lower rate.

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Pay the house off & get a loan to remodel. The reason I say this is because if you have some kind of hardship (financially) you'll still have a roof over your head. Depending on the type of loan/amount you get, you won't necessarily have to use your home as collateral. Actually I would pay the house off, save more money & pay cash for the remodel.

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Thanks a lot! I was thinking about financial hardship. I guess a smart move could be to borrow the max without collateral and remodel whatever can be done with. Great idea!
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Either way your house will be used as collateral to back up the loan. Interest rates at this time are very low. It would benefit you to talk to a few different lenders and see which way would give you the lowest interest rate.

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