| Refinance vs. credit card/student loans |
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jmorr
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 26 Oct 2010
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| Refinance vs. credit card/student loans |
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My wife and I recently purchased a home for $155,000 which was about about $4000 below appraisal value since it was through family. Current mortgage balance is $150,000. Within the past year, we have renovated kitchen, both master bath and guest bath, and painted bedrooms. Currently houses are selling on the street between 190 and 230. The house for 190 is smaller than ours and less updated. We figure now we can maybe get between 185-195 for our house. Our current mortgage rate is 4.75% with a monthly bill of $1013 that includes insurance.
Now, I have $24,000 in student loans and about $15,000 in credit card debt.
Would it make sense right now to just continue to pay minimums on student loans and cc OR possibly look to get reappraised/refinance and pay off other debt?
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Tue Oct 26, 2010 3:50 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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It all depends on the interest rates. Which I presume the CC probably is the highest, no? You want to pay off the highest-rate debt first, since that's what's costing you the most. So converting that high-interest debt to low-interest HELOC makes sense at first glance. But do the numbers, because you're also converting short-term debt to long-term debt, so you want to look at what the cost will be to finance over the term of the loan, not just the monthly payment.
Here's another couple thoughts: pros and cons of an appraisal: getting reappraised at your lowest estimate puts you over 20% equity, and you can dump the PMI, which is costing you ???? But....on the flipside, getting reappraised, and/or taking out equity, may affect your home insurance, you may have to increase the limits (and you won't be able to cancel the PMI)
~Tim~
Eye Candy : Why Whimsy
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Tue Oct 26, 2010 7:42 pm |
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jenniemercado
New Member
Cash: $ 1.00
Posts: 4
Joined: 28 Oct 2010
Location: Tennessee
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there are lots of offers that you can get online, just search in google and you will find it.. you will be enlightened by it. 
credit repair | fix credit
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Thu Oct 28, 2010 2:44 am |
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