Taking out the equity in my home
ok so ive had my house now for about 3 or so years and i have a 5 year fixed loan my house was 127xxx when i bought it. I want to take some equity out of it if any and pay off all my CC bills. Is this wise? as it will be time for me to refinace in another two years. I have done some homework on taking out the equity but just wanted to know if anyone has done this and what are the pros and cons of doing this.
the con is that you do this and your house isnt worth the value you make it.
say your house is 100 grand, you tell the bank its worth 120 grand and you want the 20 grand. you get it and pay off your cc bills and such. you then in a few years go to sell and dont sell it for the 120 grand, u now owe all that money back. you also need to make sure you refinance with a company that has NO closing costs. i used lending tree.com, got tons of offers and chose the best. also if you can when you refinance work it so that you make your last payment to your mortgage, then begin the refinance process, it take about 14-21 days, if you work it right you wont have to make the next months payment. also you can ask the lender if they could give you a lower interest rate if they pay off you debt for you and then issue you the remainder of the money. i thought it was gonna be an easy process but honestly it was more stressful than purchasing my home. i ended up using gb bank, its based out of georgia.
good luck
How much did you want to take out, i.e. how much do you owe on those credit cards?
I'd rather get a low interest loan or consolidation account and pay one amount a month until I pay them off...
I did that back when I had tons of ccard and over 8K in debt.. I just put them in an Amex optima account with 0% interest for the first year and about 10.apr or so after that.....
I got free clear tails with my ride.....
AMEX is the prob i am having thats who i owe now its about 6k that i owe the intrest rate is killing me i can really only afford to just pay the min which is like 150 or so a month which doesnt help me at all i really just want to be done with it so i can cut this fucking card up.
Now as far as getting my mortgage company to pay the bills off for me i never thought about that i still have about 2 years before its time to refinace again so that gives me some time to think about it. I also see what your saying if i sell my house and i dont get the full amount. I dont see why i wouldnt i live in a very nice area the houses around me are all 160+ so im hoping i wouldnt have trouble selling it for more than i paid for it. I dont plan on moving for a while its really big for just me 3bdrm 2 1/2bath and 1 car garage its a nice townhome and i wouldnt move unless i get married. Is there any way i can get my payments reduced when i refinace? im paying around 921 a month now
you can refinance when ever you want, there is no time limit unless your mortgage company has a prepaymnet penality(mine was 250).yeah it sounds like your house is in a good area, but, u need to think in a couple years is there gonna be anything going on to increase your value, because ultimatley you would like to sell it for more than you refinanced it for. also remember when you start shopping around with mortgage companies it is gonna hit you credit hard with everyone looking at it, so when you are ready try and get it done within a months time.they lowered my interest rate .25 when i agreed to them cutting checks to my lenders to pay off my debt. take a look around your neighborhood for houses for sale and look them up on the web and see what their asking prices are so you can get an idea of what houses are going for. some lenders are pretty strict about what you house is worth cause they are worried you will over price and possibly foreclouse and then they out the money, thenh there are some where they just drive by to see the house is there and let you make the decision what its worth. my house is worth 142500 and my payments are near 700, so you could definaetly save some money.do your best to find a lender that has NO closing costs.
I think it is a five year fixed and then it changes to a varable rate.Originally Posted by ironchef
6K is not that much... you can always call them up and explain the situation and see if they can lower your rate.. they can be very reasonable if you say the right things...
Start by locking that Amex account, in that you won't be able to charge anything else on it. Then work towards paying off the balance. The way I see it, if you borrow on your equity, you're still going to have 6K to pay off, and the fact that it is no longer on the Amex, may entice you to spend /charge even more....
And if it is on the green card, try switching to the Amex blue...
I got free clear tails with my ride.....
its a 5 year intrest only loan as far as it being the amex blue i think it is its a delta sky miles one! i know i should have enough miles to fly from here to fucking brazil by now! i will call them and see what i can do about the payments. Thats really crazy how your payments are that low i wish mine were it is my first house and i got it when i was 22 im 24 now so i thought it was pretty good when i got it. I still love it and all the houses around here like i said are 160+ and 180+ i live near the camp creek marketplace and if your ever in this area you know how much this area is growing!
Posting Permissions
Reply With Quote