Mortgage possibilities?

Question

Im considering refinance possibilities.

Current:
$67,600
1st mortgage - 7% - very recent refi previously done due to layoff.

$15,000
Line of Credit (sorta a 2nd mortgage) - 9% - full

$9000
Credit card debt - mostly due to layoff going from making
$70,000 a year to $20,000 a year.
Various rates among 3 cards (all same bank).

Refinance reasons is obvious.
But ultimate reason is consolidate.

Recent attempts at getting estimates find most of the choices
are that a new primary might not be good enough to replace current (except on rate), but the costs are such to make it almost not doable.

On 2nd mortgage, seems that its not doable in that some rates are even above my current avg rate on my debt.

Suggestions?

Im leaning toward doing nothing except locking the lineofcredit into a shorterm fixed loan and using a future cashflow improvement to pay off debt (cashflow improvement is a investment that will actually pay the mortga

Dont know score - but its probably good.
House is likely worth $95,000 based on exact floorplan of house in area that sold for that (except I have a 600sqft den addon and a masterbath addon).

This question presumes I have good enough score...and that the value is sufficent.

The refi will happen no matter what, as long as the rate less than current (on all that is refi'd into new mortgage).

If there is no rate gain, I wont do it..
The new funds will pay whatever I have whether refi'd or not.

In at least 3 cases, rates were actually worse than staying the course with current rates & debt as is, and just paying it off quicker.

If the rate/mthly payment are not better than current then its worthless.

Ladyto, u are an idiot.

I am wanting to refi in order to maximums a very large inheritance and having it pay the mortgage.

U probably misunderstood the intent.

PLus while I hope to buy or build or move into a new home, selling the house at the moment is not even a consideration or a need.. The house is 1.5 times the current mortgage and the line of credit is only half the equity.

So far the choices have been more expensive than keeping stuff as is and just paying on them hard.

Neither answer is 'theory' the kind of answer wanted... One off base, and the other not enough.

Answer 1

The missing pieces of this puzzle to quote solutions are credit score and value of the home.

There are many loan programs designed for debt consolidation. maybe a little guidance from the credit score side would be helpful...if we get your score as high as it could be it helps with rate / fees etc.

I train loan officers and write a blog that can help you...check it out.

Answer 2

I would sell the house; if the house has enough equity in it to pay off the 1st mortgage and settle with the credit card companies, etc... If the credit card debt is unsucure debt than you should have a little time to sell your house. If you have little or no equity in the home you cannot refinance unless the home will appraise for the amount financed. If the house will appraise for the amount of your debts maybe you can settle with the credit card company's for less with a lump sum payment and work this out between you and them; have a written agreement. Don't sign anything until you know what all your options are. Talk to a lawyer and get his opinion. Maybe you could file a chapter 13 bankruptcy or a chapter 7 but I would not do that with unsecure debt unless there were threats of garnishments to my paycheck. If you file a bankruptcy some of the laws have changed now and you can lose your home that is why it is very important to talk to a lawyer. Maybe you could leave your house out of the bankruptcy.