Posted: Fri Oct 05, 2007 11:06 am Post subject: about refinance
It is time to refinance before my mortgage goes adjustable. It is so confusing!
Do I want to get some cash back to fix my bathroom?
Do I want to open the home equity line of credit?
Do I want to not get the cash and use the line of credit to fix the bathroom?
I just don't know. Any advice/ideas would be appreciated. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Easy
If you can get a better rate on your first and/or have some bills you want to consolidate and you have enough equity you can do one loan and put $$ into savings till you need it.
If you have to refinance anyways might as well take what you need.
You can also get a HELOC if you want a creditline to use later. _________________ Eugene Volovik
Home Loan Consultant
Countrywide
612-481-3127
Conventional, FHA and Commercial Lending
I consider that you have to work out the calculations for interest bearing for which is lower. as this is the only way to avoid unnecessary repayments for the interest incurred. The objective is to get financier for your needs with unnecessary risks. This means to reduce the risk factors.you'd better try for your managing "sort and solve" for your risk factors that you can forecast after getting money. You can find some solutions.
Come back and let us know what type of rates and programs you are getting offered. The only way to figure out which is the best way to go is to way all the options and see what the math says.
Here is what you want to know....
What programs and rates are available? You stated Home Equity Loan or Cash Out 1 loan. You might even look at a 2nd mortgage. It all depends on current rates and the rates you can get.
I can almost guarantee that 1 loan since you need a fixed rate anyway is going to be the way to go. However you will have a higher rate if you get cash to do work with.
But the only way to find out is to see what programs are available for your situation. _________________ Eric Matthews
Assuming the renovation costs are less then 35K, you could refinance your ARM and fix your bathroom using one loan program---the FHA 203k...
You could refinance up to 97% of the future property value (value after repairs) at low fixed rate (currently in the 6's at 30 YR fixed) which would be a far more competitive alternative then a 2 loan approach.
evolovik26
