Green Financing

So our lender, Wells Fargo, announced today that it will cut its greenhouse gas emissions 20% below 2008 levels by 2018. The bank says it plans to install solar arrays atop some retail banks, adopt more efficient building codes, and cut work-related air travel among its employees. We did not select Wells Fargo because of its new green commitment, but we hope others' choices are influenced by a company's action on global warming. Kudos Wells Fargo!

Rate Lock, Appliances, and "Before" Picts

After over six months of stressing about the interest rate for our renovation loan, we finally locked in at a very good rate of 5.375%. Mind you, our current rate for a regular ol' 30-fixed mortgage is 6.125%, so this really is an excellent rate. Renovation loans typically have higher rates than 30-year fixed mortgages because the bank bases the value of the collateral on the future value of the finished house, a risky proposition for them. We also learned that, unlike rates for fixed and adjustable rate mortgages, rates for renovation loans are not regulated by the government. Banks can set them wherever their investors decide to set them. Though, they are typically .25% higher than rates for conventional 30-year fixed mortgages. Long story short, we're very happy with our 5.375%.

In other exciting house news this weekend, we purchased a stainless steel gas range from Craigslist, my new favorite appliance store. It's a one-year old Kenmore, a basic model with a warming drawer and set us back a whole $350. They sell new for about $650. So far we've acquired a one-year old stainless steel fridge (Kenmore Elite) for $1000, a two-year old stainless steel (inside and out) Kitchen Aid dishwasher for $400, and the range, for a grand total of $1750. All we have left to buy is an over-the-range microwave, which I'm still confident we can find on Craigslist for less than $200. That would mean we bought a relatively new complete set of stainless steel appliances for less than $2000. Boo. Yah.

A few "before" pictures below. These are shots of the front, back, and one side of the house. I included the side shot to show where the old house and new house will meet. In the picture, just a foot or so to the left of the window marks where the new house will begin. Everything beyond that will go.

After over a year of design work, including a set of plans that were too expensive to build, today we signed a construction contract! Our builder is Justin Sullivan from Impact Construction, and he has been FABULOUS so far. He worked extremely hard to help us design an addition that could be built within our budget. And then he negotiated tirelessly with subcontractors to get us a very competitive bid.

Here are the construction documents from the architect, John Spears from Sustainable Design Group. You'll see the four rooms of the original cottage that we're keeping on the left hand side of the first floor drawing. The new basement will connect to the existing cellar via a doorway.

Now that the contract is signed, we will have 45 days before the loan closing (John Yanetti from Wells Fargo has also been fabulous to work with) in which we'll have to obtain the building permits. Justin will start as soon as the loan is closed. Oh yeah, and we have to pack up our entire house, rent a storage unit, and move into our in-laws' place across town (the in-laws are in Maine for the next couple months).