Hi lmayj,
It is possible to refinance the existing mortgage with a home equity line of credit or HELOC loan. The upfront costs that you need to pay on the HELOC loan are much lower than what you need to pay on a refinance with a regular mortgage. However, the interest rate on the HELOC changes frequently. If the market rates increase, you will have to pay a high rate of interest on the HELOC loan. If you have too much of revolving debts, you should first try and pay them off. If you can reduce the amount of revolving debts, you can improve your debt-to-income (DTI) ratio and qualify for a normal rate and term mortgage.
It is possible to refinance the existing mortgage with a home equity line of credit or HELOC loan. The upfront costs that you need to pay on the HELOC loan are much lower than what you need to pay on a refinance with a regular mortgage. However, the interest rate on the HELOC changes frequently. If the market rates increase, you will have to pay a high rate of interest on the HELOC loan. If you have too much of revolving debts, you should first try and pay them off. If you can reduce the amount of revolving debts, you can improve your debt-to-income (DTI) ratio and qualify for a normal rate and term mortgage.
My current mortgage rate is 6.12 fixed for 24 more years ($65,000. remaining), a new car loan at 5.75 (33,000.) and a few credit cards at 10-15% ruffly ($20,000.) so mabe I should just leave it all alone and just be poor until I pay off the car and not ruin my current mortgage. I have a manufactured home on 2.5 acres so I can am having trouble fefinancing to consolidate debt.
>>how does this make sense?
Because the monthly HELOC payment would be lower then your current monthly payments to all your creditors, resulting in a lower debt-to-income ratio.
Because the monthly HELOC payment would be lower then your current monthly payments to all your creditors, resulting in a lower debt-to-income ratio.
