I would like to know what to do about refinancing my home or if equity loans are best suited for my needs. I bought my house 3 years ago with a no down first time home owner mortage. I got a 5/1 ARM at 6.125% which will be over in 2008. I want to get a fixed rate now locked in but also would like to boworrow money to pay off debt and do some remodeling and consolidate into one payment. The property is appraised at $ 150,000 and the principal is $ 113,000 will I be able to accomplish my goal? I figure I would need $ 20,000 to pay off the debt and get some things fixed , Any advice would be appreciated.
2006-08-12 17:50:04 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If you plan on staying in the house for some time I would suggest a refinance with a fixed rate. rates are still quite attractive and can ultimately save you money and reduce your current monthly payments. obtaining a equity line of credit will probably save you some money consolidating your debts but your still adding another payment.ther is allot of use full information on my web site please feel free to check it out or contact me I would be more then happy to show you some different options.
http://homefrontmortgage.us
2006-08-12 18:17:40 · answer #1 · answered by CAS 2 · 0⤊ 0⤋
I built a house and when I was done I had over $50,000 in equity but I already had a fixed APR of 5.625 so I had to take out a home equity loan. It worked out good because all I have to pay is the interest for the first 5 years and then you can finance the remainder for as long as 10 years. With you not having a fixed APR yet I would see about getting the money in your mortgage so that you don't have to worry about repaying your loan in 5 years. I would refinance my house and add the $20,000 home equity loan that I now have except for the fact that I can't get refinanced for 5.625 because of rising interest rates. Good Luck
2006-08-12 18:10:48 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Your house is not a bank and every time you pay off debt (which you should control) you are messing up your equity. You should not do a remodel if you have debt and this ARM to refinance. Stop and really think about your finances, it seems you are treating money too carelessly. You have to be careful. What do you have saved? In an IRA? For kids college? I suggest you research a good rate for a fixed, depending on that debt amount and interest rate, see what can come out without taking extra for the remodel or anything else.
2006-08-12 18:01:22 · answer #3 · answered by MadforMAC 7 · 0⤊ 0⤋
I would refi and go with a fixed. Home equity lines scare me, too much like a revolving credit card and usually are higher % rates than firsts.
My tax man told me to never pay off anything like a car with a refi because I would still be paying it off long after the car had died. We've refi-ed several times and paid off and done some improvements. We settled for improvements that would add to the quality of our life and didn't borrow the full amount that was available because I worry that the market may turn downward. Pay off high % credit cards and such but don't run to pay off student loans that may be at a 3% rate or something like that. While doing the improvements on the house, we put the money in a % bearing account until we pulled out what we needed, bit by bit.
2006-08-12 17:57:50 · answer #4 · answered by Chloe 6 · 0⤊ 0⤋
Read some tips and articles on loans and equity on this site
2006-08-12 17:53:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋
There may be something of use here.
2006-08-12 19:26:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋