should i pay off one then refince again?what is the best way to go about this
2006-09-26 14:21:32 · 3 answers · asked by tee 1 in Business & Finance ➔ Personal Finance
First, I would ask you how much equity you have in your properties. You may not even need to pay any of them off. If your credit score is higher than 660 and you have some equity you could tap into that available equity with a no doc loan if you have enough equity to fund your project. That way you don't have to be concerned with your debt to income ratios.If you don't have enough equity you can apply for a construction loan. However, your debt to income ratio may be a factor. Lastly, you can apply for a loan with a hard money lender. Caution, the interest rate will be very high with a hard money lender but once the house is built you could then refi into a conventional loan. Basically, the first thing you want to do is determine your avail equity in both properties. Second, find out your middle credit score. There are 3 credit bureaus. Trans union, Equifax, and Experian. For mortgage purposes the middle of the 3 scores is used to qualify you for a mortgage. Go to annualcreditreport.com for a free report from each of the 3 credit bureaus. Once you have this info you will be able to find out the best course for you. A good mortgage banker will be able to help you with determining what is the best options. My advice to you is keep in mind that refinancing is expensive so try to keep it to a minimum if possible.
2006-09-26 14:51:56 · answer #1 · answered by Michael W 1 · 0⤊ 0⤋
Pay off BOTH... save save and save some more then build a home !
Keep in mind if you want to financially free, you should never build a home which costs more than two years of your income.
If you don't mind working and plan on working hard for many MANY years then go all out and and be happy with your decision to NOT be debt free & wealthy!
Good Luck ! : )
2006-09-26 15:02:29 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
If you're looking to build, there are loan programs that will give you 100% of the construction costs based upon the final (completed) value. If the completed value is such that the cost only add up to 65% Loan to Value, you can get a loan even if you have horrible credit.
2006-09-26 14:56:33 · answer #3 · answered by Du Hast mich? 3 · 0⤊ 0⤋