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Should I refinance my home or go for an equity line of credit? |
I've owned my home for only two years.My interest is 8%. I would like to pay off credit cards and do some home improvment. is it a good idea to look into an equity line of credit(if I have any) Should I refinance? Or should I find other way's to pay off CC and do home improvments. I would really like to get my self out of this CC hole I'm in. I'm not sure if using my home would be a good idea..Maybe I should refinance? I'm really lost!! I want to make the right financial decision. Please help with any advice. BTW- were having another child in Febuary and I need to get rid of some mold in the basement bathroom, That's why I need some money fast for home improvments. Thank You here you'll find a few comprehensive & FREE sites that explain it all quite nicely. http://credit-cards.ebookorama.com... http://finance.ebookorama.com http://credit.ebookorama.com http://credit-repair.ebookorama.com... if you get any luck please don't forget about me lol, hope it helped you! Refinance with a fixed rate or get an equity loan for a fixed rate. Well mtg rates are still high but you refinancing and adding in some extra money for the things you need might make your payments the same. Did you think about claiming on your insurance policy the mold damage? I believe an equity line of credit is a good way to go because the payments are cheap. Then later on down the road when the mtg rates go down then refi to get your interest rate down. The best thing to do is sit down with a financial advisor from your regular bank, who will help you look at your options free of charge. S/he will be able to take into account your salaries, taxes and current interest rates available for your credit rating as well as how much money you are looking to take out. There are many variables here, so it's best to get a real answer from a financial advisor, not just yahoo answer people. Your interest rate seems a little high. Talk to a personal banker and/or a mortgage broker. They should only give you advice after they fully understand your situation. There are a number of other factors to consider, such as: - how much tolerance do you have for fluctuations in your payments? - how secure is your income? - how much do you need to borrow? - what penalty would you need to pay to refinance now? Get expert advice on this - it's no small potatoes we're talking about. -- Good luck! Check with some lenders in your area, including your current mortgage holder. They can estimate whether your home has appreciated enough to make a refi feasible. If you do, be sure to get a fixed-rate loan. I'd stay away from lines of credit at this time. Interest rates are too unstable. You should be able to beat 8% easily. But, then, 8% is extremely high for a loan issued 2 years ago. It could be that your credit score was low then. 2 years of on-time mortgage payments may have helped that situation, but it depends on the rest of your credit picture--primarily those credit cards. I believe you can get a free estimate of your credit score from Equifax. Check online. I'd do that before approaching a lender. Well, you're in a pickle here. You have two outstanding issues. One is your debt, and the other is your mold problem. If you refinance, you can lump in your house payment and your credit debt. It should knock down your monthly payment for house and credit combined. However, you cannot ask for extra on your refinance to cover the mold. They will take dollar for dollar on the refi. Let's say you owe $100000 for house and $10000 for credit debt. They'll refi you for $110000. No more. If you want to take care of your mold, home equity loan is the best bet. However, there will additional costs for that. A current appraisal will have to be done first, which costs about $350. Then, they see what your house is worth now compared to what your house was purchased at. Then, the difference is the limit of your home equity loan. I'd refinance and the money you save per paycheck can go towards your mold problem. That's probably the best you can do. |
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