u/PensiveToaster1040

40m + 40f, 2 younger kids. We are fairly regimented and live comfortably. I audit our spend quarterly in order to reign in lifestyle creep. I didn't come from money, quite the opposite, and the thought of this project is making me ill in spite of being in a good spot financially. I've become used to having a large safety net and am nervous to dip into it as I always prepare for the worst. My idea of hell is committing to this, building starts, and one of us loses a job while the stock market takes a turn for the worse. Comfort goes bye bye...

Classic case of buying the "worst" house on the block and planning to bring it up to snuff after the kids / pets beat it to hell in their formative years. Our project was just quoted at 900k to add 1800 sq ft and renovate the rest of the house - which it absolutely needs. Half functioning bathrooms, heinous tiles, and ancient floors that dip 1.5 inches randomly...it has character in spades.

We do not want to trade a 2.85% mortgage and do not want to move.

I do not want to sell 900k of stock at once.

Thus...this plan to fund half and borrow half. Now to the details:

Home Stats:

Home purchased 2021 for 950k

200k down, 30 year @ 2.85%

~670k remaining

Current Value: ~1.675m

Assets:

1.15m Brokerage (Long Term Capital Gains)

300k Brokerage (Short Term Capital Gains - become LTG in April 2027)

650k 401k (Combined)

50k 529 x2

Income:

450k combined

~45k bonus combined

830ish credit score for each of us

Questions:

1. Is this an optimal plan?
2. Where should I be looking for NJ HELOCs?
3. Should we consider new CCs? We use Amex Plat and United Club Chase and pay off monthly.

Thank you all for your feedback.

40m + 40f, 2 younger kids. We are fairly regimented and live comfortably. I audit our spend quarterly in order to reign in lifestyle creep. I didn't come from money, quite the opposite, and the thought of this project is making me ill in spite of being in a good spot financially. I've become used to having a large safety net and am nervous to dip into it as I always prepare for the worst. My idea of hell is committing to this, building starts, and one of us loses a job while the stock market takes a turn for the worse. Comfort goes bye bye...

Classic case of buying the "worst" house on the block and planning to bring it up to snuff after the kids / pets beat it to hell in their formative years. Our project was just quoted at 900k to add 1800 sq ft and renovate the rest of the house - which it absolutely needs. Half functioning bathrooms, heinous tiles, and ancient floors that dip 1.5 inches randomly...it has character in spades.

We do not want to trade a 2.85% mortgage and do not want to move.

I do not want to sell 900k of stock at once.

Thus...this plan to fund half and borrow half. Now to the details:

Home Stats:

Home purchased 2021 for 950k

200k down, 30 year @ 2.85%

~670k remaining

Current Value: ~1.675m

Assets:

1.15m Brokerage (Long Term Capital Gains)

300k Brokerage (Short Term Capital Gains - become LTG in April 2027)

650k 401k (Combined)

50k 529 x2

Income:

450k combined

~45k bonus combined

830ish credit score for each of us

Questions:

1. Is this an optimal plan?
2. Where should I be looking for NJ HELOCs?
3. Should we consider new CCs? We use Amex Plat and United Club Chase and pay off monthly.

Thank you all for your feedback.

40m + 40f, 2 younger kids. We are fairly regimented and live comfortably. I audit our spend quarterly in order to reign in lifestyle creep. I didn't come from money, quite the opposite, and the thought of this project is making me ill in spite of being in a good spot financially. I've become used to having a large safety net and am nervous to dip into it as I always prepare for the worst. My idea of hell is committing to this, building starts, and one of us loses a job while the stock market takes a turn for the worse. Comfort goes bye bye...

Classic case of buying the "worst" house on the block and planning to bring it up to snuff after the kids / pets beat it to hell in their formative years. Our project was just quoted at 900k to add 1800 sq ft and renovate the rest of the house - which it absolutely needs. Half functioning bathrooms, heinous tiles, and ancient floors that dip 1.5 inches randomly...it has character in spades.

We do not want to trade a 2.85% mortgage and do not want to move.

I do not want to sell 900k of stock at once.

Thus...this plan to fund half and borrow half. Now to the details:

Home Stats:

Home purchased 2021 for 950k

200k down, 30 year @ 2.85%

~670k remaining

Current Value: ~1.675m

Assets:

1.15m Brokerage (Long Term Capital Gains)

300k Brokerage (Short Term Capital Gains - become LTG in April 2027)

650k 401k (Combined)

50k 529 x2

Income:

450k combined

~45k bonus combined

830ish credit score for each of us

Questions:

1. Is this an optimal plan?
2. Where should I be looking for NJ HELOCs?
3. Should we consider new CCs? We use Amex Plat and United Club Chase and pay off monthly.

Thank you all for your feedback.