Should i refinance my home which is now 8 months old, or apply for a secured loan.?
Answers:
you may not have enough equity to even consider refinance..Basically look at the interst rates of your existing loan and the rates that are currenlty being offered. Is there more than a 2 point differnece? Has homes in your area in the last 6 months gone up in value considerably? Don't forget with refinancing also comes clsoing cost, points, assesment, and attorney fees. Talk to you finance company. Otherwiwse look at possibly a second mortgage or line of credit (again depends on equity though)
IT DEPENDS WHAT UR INTEREST RATE.IF IT IS REALLY HIGH THEN
LIKE 9% BECAUSE U HAD BAD CREDIT THEN ITS OKAY TO REFINANCE
WITH A GOOD CREDIT SCORE.
Depends on interest rate you can get, don't do an APR. The way things are going you'll screw yourself. Refinance after 12 months on a fixed rate, if you can wait that long.
if you choose to refinance i know the best morgtage company who will work their tails off to get you the greatest rates. this guy will go to six or seven lenders just to get you the best deals...super honest. i was pleased! actually, either way, i think he could help you...let meknow if your interested..
when your refinance you are trying to do two things normally. you are trying to drop the term of your mortage so that you pay less interest in the long run, or you are trying to take advantage of a lower interest rate and thus be able to pay more of the premium or drop your total payment. not sure how you paid for your house, but refinancing after 8 months you are going to find that interest rates have gone up, you will most likely be stuck with some more closing costs, but with the shortness of time some of the costs may be waived. never take out a home equity loan on your house, first you use long term appreciation to take care of short term debt, bad idea. second, home equity loans normally take on the first payoff role over a regular mortagage. thus the failure to pay the home equity mortgage can cause a default on the loan and thus cause you to lose the property.
some of the answers here were horrible. Ignore that stuff about "two points". You have to compare your total current debt and payment to your proposed debt and payments.
In general, you get a much lower rate on a mortgage than you do on consumer debt. You are almost always better off refinancing your house to pay off other debt.
Just don't get into the habit of it.
A few things to keep in mind...
1) Do you have a pre-payment penalty? If so it is most likely 80% of 6 months interest so the number may shock you
2) Many lenders will not allow you to use a new appraised value of your property for cash out purposes within 12 months of the purchase date; some will but the majority will not.
If you wish to go over your specific situation feel free to drop me a line.
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
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