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[Going_Going_Gone]

Originally Posted by MarkEkberg

I have been asking some questions lately for a few reasons:

1. Cost overruns on renovations to the tune of 12K.

2. Interest rates going lower then mine.

In seeking out offers I have found out my credit score is 775. I thought that was cool!!!


Bought it for 100K 3/07
My total owed is close to 80K.
It is assessed at 140K.
Supposed market value is 180K.

I would like to take 10K out of equity to pay off my overrun debt which my folks have absorbed right now.

Only way to get no closing costs is to pull out all the equity for a loan of 180K then pay it back over the next few months.

Am I missing something in wanting to do this?

If you plan on staying in this home for five or more years, you should be able to do a refi for the payoff on your loan plus the $10K. It is well within 80% of appraised value. Then you could take your closing costs, origination fees, etc. and roll them into the new mortgage and pay them over the life of the loan at a fixed interest rate. I would think that some mortgage broker could help you do so. Tax-wise, you can't write off the whole $ amount (of the fees) this year, but you should be able to deduct the yearly portions of those costs from your taxes. A word to the wise, you'll probably do better going with a new lender. If you try to refi with your current mortgage holder, they know they've got you, so they'll not be in any hurry, and maybe not go to as low a percentage as you could qualify for.

A HELOC (Home Equity Line Of Credit) or second mortgage could also get you the additional money you need, but the interest rates are not fixed--you might start out at 5% and be over 10% in a couple of years. However, if you don't plan on staying in the house for many years, then it's probably not worth it to refinance the whole enchilada. Credit Unions are good places to get a HELOC. They're usually offering specials that pay your appraisal fees and such to get you to take out your loan with them.