home addition

The Forum facilitates discussion of a range of questions and topics. Please participate! However, if you have a customer support issue, please don't enter it into the Forum. Instead, please create a support ticket and we'll be in touch shortly to resolve it.

What would be the best way to show a planned addition/remodel to a current primary home?

--current 30 yr mortgage on primary home stays intact.
--2nd 10 yr mortgage taken on cost of addition
--value of home jumps one time after addition, then continues to grow at previous annual rate
--taxes and insurance on home jump one time after addition, then continue to grow at previous annual rate

‹ Future Vacation Home Home change - Results make no sense ›
Submitted by gsheff@austin.rr.com on 28 June 2009 - 10:19pm.
Filed under:
»

Comments

1
From: Laurence Kotlikoff

I'd just enter an additional mortgage for the cost of the addition and increase the current market value of the home by that amount. Also adjust the taxes and insurance up. If the addition will take a year to build, you can offset the immediate increase in taxes and insurance for the current year by adding in a special receipt that's not taxable for the current years. best, Larry

2009-06-30 18:25