do i remortgage ?

Question

ivea house worth£95000 with a £15000 mortgage left on it also i have a £4ooo loan with£"2ooo left on it what do i do i need 15ooo for home improvements whats my best bet ps my mortgage has 11 years left?

interest rate on mortgage 4.7apr

Answer 1

It's impossible to answer this question without knowing what the interest rates are on your mortgage, your existing loan, and the current rate for new loans! We'd also need to know how much the typical closing costs and fees are for mortagaes/loans in your area...

I suggest that you visit your local bank and get some advice...they may not have the cheapest interest rates, but they can at least tell you what you need to consider when comparing your various options.

Answer 2

Be careful remortgaging is tricky for the homee owner. Ask your self these questions to come up with an answer you can live with. How bad do you need the money? How bad do you need hom improvements? Are you reselling the house soon? Will the house resell for a profit with the 2nd mortgage when you sell? Do you have another way to get the money? And last question to ponder. Will you have job security for the remainder of the mortgage. Most important don't let anyone like lenders answer these questions for you...They'll always answer yes.

Answer 3

You can very easily obtain a home equity loan with that kind of equity. If you use a contractor for the improvements, you can also obtain a second mortgage. As far as the debts of 4,000 and the 2,000, these could easily be rolled into the new improvement loan thereby having only one payment. You have enough equity to do any of this. Your present morgtage holder could do this for you. They'd be delighted.

Do not refinance your morgtage. They would love that. At the present time your payments are mostly going to principal. You've paid the majority of interest. Do not refinance. Take a second morgtage. If your lender will not, go somewhere else.