Mortgage question

[Okie_Bob]

For what it's worth, I had a very similar situation and got around it by not telling the mortgage company what I was going to do. I just did it. They never come check on a house that I know of so if you don't say anything they never know. Maybe not the best thing to do but it sure worked for us.
I did run into a problem when I wanted to upgrade my insurance. They sent out an agent and he sat there looking at the framing on the house with his mouth hanging open...saying...you..you... you can't do that?? You can't do that??/ So I just said obviously I can so do you want to insure it or not? He left shaking his head and a week or so later I got an ammended insurance policy with the values I had asked for!! Was pretty funny at the time.
Walkabout, what I'd recommend would be to wait till you have the rest of the money saved up and then build the new house without telling the mortgage company or borrowing ANY money. Pay for it as you go is what we did and it is great not owing anything on it.
Okie Bob

[walkabout]

Thanks for the advice Okie_bob, but I made the first mistake of asking for permission to tear it down. I am also in the middle of a dock dispute with one of our neighbors so I wanted to keep it as legal as I could in fear of someone reporting me.

In the end we believe we made the correct decission to shuffle our debt around so that we can pay for the cabin proprty outright and not have to ask for permission to do what we want to do. The rates are so good right now that we will be able to pay off all our loans 15 years earlier and save over 200,000 in interest.

We also intend to pay for rebuilding as we go too.

[glenn kangiser]

Okie BoB, continuing to do the impossible... I like it.

[Okie_Bob]

Excellent Walkabout...excellent. You will never be sorry for paying off the mortgage so you don't have a lender to answer to. Now pay off all debt and pay as you go building your home...then you can tell the world to kiss off should things get much worse.
Okie Bob

[kev_alaska]

Build the new place around and over the old one. Then tear down the old one inside......
Then again I might have had too much coffee this morning...

Kevin