How To Finance An Addition

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How does financing an addition work? (lien, paint, costs. – Let’s say for argument’s sake I have a home worth $350,000 and owe $270,000 on the note. Equity then is $80,000, or 23%. Let’s say I’d like to do a large addition that costs $100,000. What are my options in financing this? As I understand it, I have to keep an 80% LTV ratio, so although I have $80,000 in equity I would only be able to pull out $10,000.

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