Originally posted by tatercake
move to montana
Originally posted by huntr1
I think it is time to have the house appraised and refi the home equity loan.
Take out a home equity loan to consolidate other, higher intrest debt (i.e. credit cards). By transferring the debt from high intrest C.C. to a home equity loan you accomplish 3 things, #1 lower intrest #2 if you continue to pay the same amount, you pay the debt off quicker and #3 you can write off the intrest on your taxes. This assumes that you do not replace the tranferred C.C. debt with new C.C. debt.Originally posted by tatercake
help me understand something ... why would someone do this?
You get the house reappraised, find out it's worth X more dollars, and refinance an existing home equity loan for what purpose? :shrug: if you aren't borrowing more money and the rates haven't dropped, aren't you just lengthening your term (time you'll be paying on the same money you've already borrowed)?
Originally posted by huntr1
Take out a home equity loan to consolidate other, higher intrest debt (i.e. credit cards). By transferring the debt from high intrest C.C. to a home equity loan you accomplish 3 things, #1 lower intrest #2 if you continue to pay the same amount, you pay the debt off quicker and #3 you can write off the intrest on your taxes. This assumes that you do not replace the tranferred C.C. debt with new C.C. debt.
Originally posted by tatercake
okay, that's what I figured. But why refinance it? Aren't you only stretching out how long you are paying off (in a round-about way) your credit cards? Have the interest rates dropped that much that it'd be worth it? :shrug:
Credit cards run anywhere from 8-13%, H.E. runs prime + 0% (about 6 I think). You can write off the intrest, which effectively lowers your intrest rate even more. Need to refi the existing H.E. because it is only for 5% of the house's value, and we can now get one for probably closer to 20%. Not that we need that much, but it doesn't cost any more to have a H.E. loan for 20% than for 10%, when you only use 10%, ya know?Originally posted by tatercake
okay, that's what I figured. But why refinance it? Aren't you only stretching out how long you are paying off (in a round-about way) your credit cards? Have the interest rates dropped that much that it'd be worth it? :shrug:
Originally posted by nomoney
what? are you dudes financial advisor or something
Originally posted by huntr1
it doesn't cost any more to have a H.E. loan for 20% than for 10%, when you only use 10%, ya know?
You need to check that again dear. The smaller of those two houses is on just over an acre, has 300 more square feet on the main floor plus a partially finished basement. It also has a fireplace and wood floors.Originally posted by huntr1
Apparently there are 2 houses for sale in my neighborhood. 1 sounds just like my house, and is selling for $285K, and the other is a larger house, on about 3x the property and is going for $345K. I think it is time to have the house appraised and refi the home equity loan.
Originally posted by wmsaunders
I'm a loan officer working in Calvert, St. Mary's and Charles Counties if anyone has any questions or needs any help with their refi.