Need advice from a property appraiser

[NorTracNY]

Although the poster may not have been as friendly enough for you to have an open ear to him, he was right to raise the concern. Managing cashflow was a big problem for many going into 2008. They saw the low interest rates and bound up their cast into their mortgages. It wasn't the housing collapse as much as the loss of jobs. They talk about the "stress tests" of banks now. The same is true for everyone. Lots of people have dual incomes, but the cash flow is important. IF you were to lose your job, both of you lose a job, one of you goes on disability, your investments drop, etc. How long can you survive?

If you're talking about refinancing because you're getting better rates on your investments than the mortgage rate, that makes sense. But if you can't cover a years worth of expenses from your easily liquid assets then you're at risk. I'm not looking to criticize, but just make sure you've thought about these things.

 

[BigCountry1689]

Although the poster may not have been as friendly enough for you to have an open ear to him, he was right to raise the concern. Managing cashflow was a big problem for many going into 2008. They saw the low interest rates and bound up their cast into their mortgages. It wasn't the housing collapse as much as the loss of jobs. They talk about the "stress tests" of banks now. The same is true for everyone. Lots of people have dual incomes, but the cash flow is important. IF you were to lose your job, both of you lose a job, one of you goes on disability, your investments drop, etc. How long can you survive?

If you're talking about refinancing because you're getting better rates on your investments than the mortgage rate, that makes sense. But if you can't cover a years worth of expenses from your easily liquid assets then you're at risk. I'm not looking to criticize, but just make sure you've thought about these things.

While I do share everyone's concern about finances, even those whose presentation is lacking. My savings and secure investments are enough to cover me for 2 years if it came to it. Though I never stated it my mortgage after the REFI is only $268,500 with a mortgage payment after insurance and taxes of just under $1600/Mo. And I have full intention barring any catastrophe of having it paid off by the time I am 45YOA. My bills fall well within my income leaving me a large net remainder. I have expenses that are voluntary that would go long before my house or any other financed items. I know many were frivolous with their finances and used there houses as a piggy bank for extravagances and then walked. I am very conscious of my expenditures and make sure I have access to money if it is needed. I very easily could have purchased a $400,000 house but instead I chose to buy a modest house and improve upon that. I also could fund the projects but I don't want to do that as it reduces my liquid assets. Now while I do see it as a calculated risk doing improvements that might place me further in debt and said improvements not being valued at the debt I have incurred I think that the risk is worth it for me. I know you had posed the scenario of a loss of job. I have maintained my debt at a level that would allow us to continue to function with only one or the other income (My wife just returned to work after having our second child she stopped working at 2 months pregnant). Not taking into account life insurance plans or disability plans we could still survive on one income, I obviously couldn't continue to send my children to $2100/MO worth of private school and traveling would be deleted, But levels of existence could be compromised on. We would not go hungry nor would we have to default on anything.

I do appreciate all suggestions relating to my fiscal awareness but I think I have clarified enough about the soundness of my finances...... :thumbsup:

***On the REFI, the appraiser came out today. He took all his photos, asked to see the plans for the new projects (Though they are not being considered in the REFI) and said he would have his report completed by Friday or Monday. He told me that he was "confident" that the value would come in where we needed it to.