Bought a home about a year ago. 80% of the loan in a 30 yr fixed and 20% in a variable Helioc. The Helioc is at about 9% interest right now and we "think" we would like to refinance just that part of the loan- we don't need to borrow against the Helioc and can afford larger payments. Right now we just keep looking at the interets on the Helioc and it seems ridiculous!! Also- the home was a repo and a major fixer upper when we bought it and we have done a lot of upgrading- should we wait until we have all that finished and have the house re-appraised?
2007-07-10 02:28:39 · 2 answers · asked by mcdermottgarrett 1 in Business & Finance ➔ Renting & Real Estate
With the 80/20 we had no MI
2007-07-10 02:37:35 · update #1
What he said. But definitely finish the repairs and upgrades first. You may have enough equity once the repairs are finished that you won't have to pay MI, but that depends on how much it was before, and how much it will be once the repairs are done.
2007-07-10 02:35:16 · answer #1 · answered by togashiyokuni2001 6 · 0⤊ 0⤋
Depending upon the rate on your first mortgage and the current value of the home it might be advisable to refinance the whole lot into a single new first mortgage. Any bank or mortgage lender can help you decide the best way to proceed.
An appraisal is going to be needed to refinance anyway and with the repairs and improvements you may well have enough equity now to dodge the bullet on PMI.
2007-07-10 09:32:19 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋