How long should I wait to refinance my home? We bought it 2 years ago.?

Question

I pay extra principle each month on it and would like to refinance enough to pay off my vehicle and to do some remodeling on my home, painting, etc. I would appreciate all insight. Thanks!!

Answer 1

There is a great chance you have built up enough equity over the past two years to make this possible. Keep in mind your rate will more than likely go up and so would your payments but it may still save you some money. If your not sure if you have a prepayment penalty you can always check your original documents you signed. Many home owners do debt consolidation like you are considering as the interest you pay on your vehicle is not tax deductible like the interest on your home is. Make sure you consult a CPA to go over the pros and cons. If you need any help or have any questions feel free to email me [e-mail].

Answer 2

What is your prepayment penalty if you should have one? Than get some comparables within 5 miles from your home if suburba or 10-20 if rurual.
Calculate subtract the comparable to your Loan Amount that you took on the property than that will be your equity. If you equity can cover your second than yes refinance and get into one loan.

Couple of choices here on options:
Heloc/eloc-Home Equity Line of credit is a revolving home credit card which interest rates flucuant with market rate. So when the market rate changes up or down so does your payment.
Good- is you dont have to appraisal your home and low cost. Great place is a credit union or local bank you currently bank with may or may not waive the fee's.

Full refinance and pull from the equity gained and buy down the rate. You can pull whatever money you need from the equity and buy down the rate with the equity in the home.

So there are some options hope it helps any questions please ask.

Answer 3

Wait until the interest rates go down. If you got your home 2 years ago with a low interest rate, refinancing now would give you a higher payment.

You need to find out if you're eligible for a home equity loan. Call your mortgage company and ask. States have different regulations for this (such as Texas only allows up to 80% of the worth).

Sometimes you have to make monthly decision, but ultimately paying 30 years interest for a car would be a financial mistake. The home equity loan on a shorter term is a better bet.

Answer 4

Sounds like you need extra cash now &the mortgage is the cheapest way to borrow. In the UK we have some credit cards offering interest free on purchases for up to 12 months. If you need longer term borrowing now the mortgage is the way to go. Make sure you borrow enough. In the UK with fixed rate deals there is usually an early surrender penalty so if you plan to move soon then it's not a good idea.

Answer 5

Have it appraised before you start the process. Make sure you have adequate equity built up. Its good that you pay more on you principle but a refy is probably still going to cost you a couple of grand. Make sure it is worth it before hand.

Answer 6

Prime companies want you to have at least 6 months and sub- prime want at least 1 year. After 2 years your good.
Myisha McGowens
[e-mail]
Primary Residential Mortgage

Answer 7

Do you have a pre-payment penalty? If not, it all depends on your specific situation: Loan to Value, Appraisal, Cash out....if you want any advice (at no cost & no pressure) I'd be more than happy to help. Just email me & I'll be able to help.

[e-mail]

-Linda Munoz

Answer 8

I guess it just depends on the interest rate. If it is going to save you $$ then go for it.

Answer 9

anytime that you think that you will save money. I can help to send you in the right direction if you choose to contact me.