Home repair/updating advice

[Highlander]

I'm not a financial wizard so I've been trying to decide the best way to handle this. We have been in this house since 2001 and it's been good to us. The HVAC still works, The windows don't leak but it's showing it's age overall. It's time for a roof, some new carpet, refinish and add new hardwoods (pets ruin things too fast) May do a preemptive HVAC replace (got 1 quote 19k- 2 units) and possibly kitchen counters.
Of course, we don't have the cash so I'm thinking refi. the problem is I'm 60. I think we have another 15 years on the mortgage but we have talked about seeing and getting a ranch instead of 2 story as the wife has Parkinson. Of course, our kids still live at home so there's that.

So what would you recommend? Refi or 2nd? We could pay the carpet off in a year. Refi would save us a point on the interest.

Thoughts?

 

[Boudie]

Closing Costs? Expected income in retirement, time frame of move to ranch house? It may be cheaper to let the new buyer repair the old house, just do cosmetic changes now

 

[Highlander]

Several lenders are offering no closing cost options on refi's.
We really need the carpet and floors done. Most of the carper it original and the other is crap that Empire sold us 5 or so years ago.
But the way I'm looking at it. If we refi with cash out we would probably get 80k out of the sale in a few years. If we don't do all the work we will get less money but about the same cash out, so I'm on the fence about the whole thing. Aslo if we do it now and don't sell for 10 years, were close to being in the same boat.

Decisions decisions.

 

[Boudie]

I've been in the same boat and not knowing when you are going to sell the house really complicates the decision. If you have a 10 yr time frame you may as well make the repairs and handle it as a long term investment but remember we are at the age where we have to consider what our health and financial situation will be in the next couple of years. I told my wife a couple of weeks ago that if she has any intention of moving we need to do it, I have maybe one more renovation/move/build left in me!

Consider using the money from the refi to make renovations to the house to accommodate the changing health of your wife. A downstairs bedroom, handicapped bathroom, more accessible kitchen. Once you go the refi/2nd mortgage route you can't go back for a while. Just my thoughts, its never an easy decision and I don't envy you

 

[JG358]

A couple months ago, I was getting ready to refi and dump a lot of equity into upgrades and remodeling stuff. Plan was more less to fix it up and sell with in the year or two. I was advised that I'd be better off selling the house as it is at a lower asking price than going with the remodel. If you don't intend to stay in the house, just sell it and move on... If your going to stay 5 plus years, fix it up.

 

[Highlander]

Thanks for the advice. It's given me more options to consider. I do think we will be here more then 5 years. I would rather not move at all personally.

 

[mjones9630]

I wouldn't change out the HVAC until its a necessity.. no reason to change it out until its irreparably dead, or you're going with a different setup, like a heat pump.. If you're selling, little things like new flooring, paint, cabinet doors, etc can really boost the resale value, and have the possibility of actually making you a couple bucks.. just something to think about. Good luck! If I was close, I'd come help.