Remodel/Construction Loan - Primary Residence
With interest rates being so high, I'm kind of stuck in my primary residence, unless I REALLY want to stretch things to only get into a slightly bigger home. So, I am considering adding a 2nd level to my 1 story home. I know it can be done. Costs would be $300K - $400K depending on how big, how nice, etc. I would be aiming to keep the costs toward the lower end. Currently, I have my primary home loan, then a HELOC that has over $200K capacity ($50K balance remaining on it, but should be paid down in the next 3-4 months), so $155K or so available to draw on my HELOC at about 12%.
I have the capacity to take on an additional $200K in debt on top of utilizing my HELOC, so long as when I am paying it down the monthly charges also go down. I can't do a new 30-year and lock myself into triple the payment.
What options do I have to get a construction/remodel loan? Any idea on what interest rates would be on that? Please let me know if there is anything I am not aware of that would make sense.
Thank you so much for any input you can provide here!