Posted on: 03rd Nov, 2010 11:09 am
I am refinancing my home and taking cash out to consolidate some other higher interest debt. One of these debts is an RV(30K) which I will be selling within the next 6 months. I was going to put the money from the sale of the RV back into the new mortgage to pay down the principal.
Does is make more sense to obtain a line of credit or equity loan just for the RV, then when it sell pay off that loan completly.
My concern is that while puting the money back into the principle I will save on interest by shortening the length of the mortgage, it will not reduce my monthly mortgage payment amount.
Does is make more sense to obtain a line of credit or equity loan just for the RV, then when it sell pay off that loan completly.
My concern is that while puting the money back into the principle I will save on interest by shortening the length of the mortgage, it will not reduce my monthly mortgage payment amount.
welcome andreageaves,
as you will be selling off the rv, it does not make sense to take out a home equity loan for it. rather than selling it off 6 months later, it will be better to sell off the rv now and get rid of it.
as you will be selling off the rv, it does not make sense to take out a home equity loan for it. rather than selling it off 6 months later, it will be better to sell off the rv now and get rid of it.
i need the rv until june when my summer home will then be complete. the interest rate on the rv is 13.9. the equity is at 2.99 for one year. the savings in interest not to mention the savings in the payment amount is why i wanted to included it it a refinance.
Hi Andrea!
Welcome to forums!
As you'll be selling off the RV within 6 months, it doesn't make sense to refinance it. While you refinance it, you'll be liable for paying the closing costs. Within 6 months, you won't be able to offset the closing costs.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you'll be selling off the RV within 6 months, it doesn't make sense to refinance it. While you refinance it, you'll be liable for paying the closing costs. Within 6 months, you won't be able to offset the closing costs.
Feel free to ask if you've further queries.
Sussane
There are no closing costs on th equity line as long as I keep it open for 3 years, even with a zero balance.