I would like to refinance my house and consolodate all my credit card debt into it......does that require getting my house appraised????
2007-01-01 11:58:45 · 9 answers · asked by Just Wondering 5 in Business & Finance ➔ Credit
I am going to agree with one answer you have already had posted. Please think twice before you tie your house to your debt. IT is not worth it. Every day I read credit reports and there are two commonality's , pay day loans and taking equity out to pay debt. Both are such common mistakes. Both I would have to say most often, but not always the first step that lands a lot of people into programs like ours. If you do anything try to refi your house at a better rate pay The difference on your cards or work harder to get your debt down. Get an extra job, transfer to no interest card, do anything but tie up your home equality with your unsecured debt. I can not tell you how many people tell me they wish they had never touched their house.
Kourtnie Donihoo
Debt Analyst
The E.D.A. Group
2007-01-01 13:45:32 · answer #1 · answered by Kourtnie D 4 · 0⤊ 0⤋
Not always.
I have lenders that i've worked with that will not require a full appraisal. They will, however, typically l ask for something in place of an appraisal. This can include:
1. A drive by appraisal- An appraiser drives by and gives an estimate of value based on the comparable sales in your area.
2. Broker Price Opinion- the lender's underwriter will call trusted Real Estate Brokers and get their opion of the value.
3. Automated Valuation- Ac omputer will tally up the average value in the are and give the lender a confirmation of whether your home is around the same value as you say.
Lenders typically only give you these options if you have great credit and a owe a small percentage of what you home is worth. What is your loan balance?
As for your credit cards:
Sometimes it makes sense and sometimes it doesn't. An earlier poster said that a consolidation would extend your debt for thirty years which is only true if you keep your loan for thirty years.
If you lower your overall monthly payment, and then take the amount your paying now and put it back into your mortgage you may end up saving yourself a lot of money and dramatically reducing your overall debt over the next five years. Or you may invest the difference at a rate of return higher than what your interest rate is.
There is no cookie cutter, one size fits all plan. You have to look at your options and do what is best for you in the long term.
If you need help feel free to contact me and we'll talk,
2007-01-02 07:51:10 · answer #2 · answered by kevingeorgecampbell 2 · 0⤊ 0⤋
Yikes.
The answer is definitely yes, you would need your home appraised, but consolidating your credit card debt should not be included in re-financing your home!
You would be paying off your credit card debts for 30 more years!
The best thing for you to do, is refinance your home, hopefully at a lower interest rate, and then take the money that you save monthly from your house payment and pay down your debts.
Destroy your credit cards immediately.
Only buy things that you really need and pay cash for them.
Save for the things you want until you can buy it outright.
Seek the advise of a debt counselor, but please, do not tack your credit card debt onto your house payment.
2007-01-01 12:11:17 · answer #3 · answered by ghostwriter 7 · 0⤊ 0⤋
Yes if you go for a tradtional loan. Some banks if you go direct to the banks will not require a full appraisal if you get a Home equity line of credit. They will do a drive by. Check with your bank rep or mortgage broaker. Most of the time they will pay for the appraisal anyways.
2007-01-01 12:09:07 · answer #4 · answered by wnichols00 1 · 0⤊ 0⤋
It appears as though all are correct. A mortgage broker will require an appraisal and a bank may just do a drive by. I recommend if you are paying off any past due debt you have settlements negotiated in order to save money as well.
2007-01-01 15:18:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Home refinancing would probably require an appraisal. You also have the option of doing a home equity loan which is similar. Sometimes when you do a refinance you can only do it for the balance due and a home equity loan lets you borrow so much % of the value of your home. For example if a home equity loan lets you borrow 80% of the value of your home, then you can borrow $80,000.00 on a $100,000.00 home.
2007-01-01 12:08:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It does if you use a bank. It does not require appraisal, if you use eloan. They also have a promotion now, If you use this link http://www.tkqlhce.com/click-2177451-10427742 they will waive the lender fees.
2007-01-04 14:45:58 · answer #7 · answered by insureman613 3 · 0⤊ 0⤋
Yes, you'll need a property appraisal.
2007-01-01 12:06:32 · answer #8 · answered by Anonymous · 0⤊ 0⤋
the mortgage company will usually provide the appraisal. you pay for it with your initial application and lock on fee (mine was 750 dollars).
2007-01-01 12:08:37 · answer #9 · answered by the beet 4 · 0⤊ 0⤋