Well, if we look at my numbers from yesterday we get the following totals
Roof: $3500
Furnace: $4000
A/C: $4000
Windows: $7500
Total: $19,000.00
HOLY COW!!!! That is one poop load of money to fork out just to stay in this dilapidated old house (remember this is only an example).
How would you finance all of this? Well, one way is a secured line of credit on your home (if you have enough of your house paid off). Right now, this seems to be a great way to do it (for the love of money, do NOT put this on your Credit Card and leave it there). Get a good competitive rate (which should be below 5% in Canada) and then figure out how long you want to amortize this expense:
$19000 amortized over 5 years would give you $358 per month payment (at 5%) and $268 if you amortize over 7 years.
Figure out what you can live with, finance it. Think about this, you are willing to plunk down money on a new car and pay more, for something you don’t live in! If you are going to live in this house for another 10 years, this is what it is going to cost.
