So the talk with the bank went quite well. They have to have someone look at the house again and the proposed plans, but it sounds like we will be doing something renovation-wise.
I had forgotten the deck off the kitchen Shan had wanted to add, so the second-floor upgrade (with deck) was about $100K not $60K. Payments on that should be about what we're paying now for our mortgage and child care.
Payments on the upgrade plus wing will be significantly more, but still within the realm of possible.
This is good news for both. There are still some hoops we have to jump through and we have to have that guy take a look at it. The biggest concerns will be that this will reset the mortgage to 25 years left again plus if the economy surges back and interest rates jump significantly, we're screwed.
So much for an retiring early. Unless we hit the Lotto Max - then, no worries.