My current home loan is fixed for 30yrs at 5.75%. At this moment i owe 350k. I need 75k to take care of some family matter. Should i refi and cash out 75k or should i take out a HELOC? my current mortgage is 2100. Thank you.
2007-02-19 13:47:40 · 5 answers · asked by ibenzsmoken 1 in Business & Finance ➔ Renting & Real Estate
It's pretty dangerous to put your home on the "chopping block", so be very careful borrowing money against your house. Refinancing doesn't sound like a big option for you either, that's a pretty good rate you've got! Make sure your family matter is yours to deal with and really worth putting yourself in a potentially risky situation. Good luck!
2007-02-19 13:51:51 · answer #1 · answered by nichhew 2 · 0⤊ 0⤋
You have an excellent rate. Unless you can get a lower rate then don't re-fi. You can take out a home equity loan for 5 or10 years. If you can pay it back along with your mortgage do the home equity loan. If you can not manage both loans then do the re-finance. It might be a bit higher then you have now but the loan amount will not be as high as the two loans combined. Talk to your bank. They'll do the numbers for you. A re-finance will also require a new appraisal. Also, how long do you plan on living in the house. You can get a very good rate if you did an adjustable for 5 years. If you are still living there in year 4 then re-finance again. If not you'll be ok.
2007-02-19 13:55:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you need money now to take care of personal matters it is not a good idea to get a HELOC. As all you are doing is borrowing more money to take care of problems. If you can afford your currrent mortgage and more monthly payments to pay off the HELOC then do it, but I personally would not. Go for the refi first. to get more cash flow.
I don't know exactly what your family matter is, but if you need 75K to take care of it, then it just tells me that you need money now. And if you get more in debt then that would mean you need more money to pay that debt. So it don't make sense.
If I were you, do something else to get more money, that will not get you in more debt. Sell something that you have. ie, if you have 2 cars and only NEED 1.
Just my opinion. I would need to know more of your financial situation to give you a more accurate advice.
Good luck
2007-02-19 13:56:07 · answer #3 · answered by BA 2 · 0⤊ 0⤋
It depends, I would probably take out a HELOC and pay it back asap. Again, it would depend on what you need the money for and your ability to pay it back. I don't think I would want to increase my mortgage if I didn't have to.
A refi would be better if even with the extra 75k, you would be paying less than you are now.
I like HELOCs better for remodeling since you don't have to cash them all out at once, and you only pay interest on what you have out.
2007-02-19 13:54:22 · answer #4 · answered by ? 5 · 0⤊ 0⤋
well you will not get a 5.75 again, so take the higher rate on the lower dollar amount, 75K then, if you prepay anything pre pay it.
2007-02-19 15:51:48 · answer #5 · answered by batwanda 4 · 0⤊ 0⤋