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.
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