Refinance, move or sink!?

Posted on: 08th Feb, 2011 06:11 pm

Mortgage balance is 145,000. Interest rate 7.05%
Home equity line of credit balance is 40,000. Interest rate 9.45% (on 30,000)
We also have about 20,000 credit card debt. I am trying several different scenarios to get out of this mess. Our job hours were decreased and are feeling a pinch.
House value is around 238,000.

I am wondering what the best thing to do would be.
Thank you!

Total Reply : 3

hi griffithma,

you should appraise your property and check out if you have 20% equity in your property. if yes, then you can refinance the mortgage and combine both the mortgages into one. in this way, you will be liable for paying off only one mortgage payment every month. the cash out that you receive from refinance will help you in paying off your credit card debts.

thanks

jameshogg

Posted on: 08th Feb, 2011 08:14 pm

No way to give a simple answer based just on the info you provided. Some things important to know are where and when did you buy the property, original purchase price, was the HELOC taken out at the same time as when you got the 1st mortgage or later any credit problems/current credit scores?

7.05% is definitely a high rate to be paying on a 1st mortgage unless you don't qualify for better pricing. First you need to supply additional information before you can receive an accurate answer and suggestions.