Posted on: 12th May, 2010 06:02 am
We currently have a 30 yr fixed mortgage at 5.625%. We would like to do some home improvements and pay off some credit card debt. I have heard about the 125% equity loans. Are these available to current home owners or only new buyers.
Other info: We have been in the house 2 years and owe $168K on a $174K mortgage; house is worth approximately $200K.
Other info: We have been in the house 2 years and owe $168K on a $174K mortgage; house is worth approximately $200K.
welcome janyale,
unless you're in dire financial crisis or facing a medical emergency, it doesn't make sense to take out a 125% home equity loan. you can, rather, refinance the loan and get a cash out to pay off the credit card debts.
unless you're in dire financial crisis or facing a medical emergency, it doesn't make sense to take out a 125% home equity loan. you can, rather, refinance the loan and get a cash out to pay off the credit card debts.
The problem is that a refinance, even at 100% would only yield $32K and I need $50K to pay off all other consumer debt. Or are you saying I can refinance at 125% LTV? If so, wouldn't that be at a higher interest rate than I currently have?
Hi janyale!
Welcome to forums!
It will be the lender's discretion whether or not he would give you a refinance at 125% LTV. The interest rates can be very high. I would suggest you to contact your lender and apply for a refinance at 125% first and check out whether or not he would offer you such a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be the lender's discretion whether or not he would give you a refinance at 125% LTV. The interest rates can be very high. I would suggest you to contact your lender and apply for a refinance at 125% first and check out whether or not he would offer you such a loan.
Feel free to ask if you've further queries.
Sussane