refinance ?

[WhitGB]

Has anyone refinanced lately? I have a question, can you refinance and add other debt to your refinance? For example, we would like to refinance to 15 years but tack on some credit card debt to the new refinance since the 2.5-3% rates are much better than what we are currently paying.

We owe around 60K less than the house is worth so there is room to add the debt and not be over the value of the home.

Any ideas?

 

[surfgirl]

Maybe.

You say you owe $60k less than your house is worth... if a certified appraiser came today, would they agree? House values have jumped all over the place, so that may or may not be 'real' according to the bank.

If you take a larger loan, would it put you over the conventional limit? Right now, a conventional loan is $417k and anything more than that is jumbo and a higher rate.

Can you take a larger loan without paying PMI? If you get a loan that is more than 80% of the house value (again, that all important appraisal), you pay PMI until you reach 80%.

Is your credit good? Your debt to income ratio? Is all your income legal or do you get paid under the table at all? Banks are really tough right now. We just re-financed, have excellent credit, are paying down significantly on our house (so asking for a much less loan), and we still had to document more than we did in the past.

 

[okw2012]

Has anyone refinanced lately? I have a question, can you refinance and add other debt to your refinance? For example, we would like to refinance to 15 years but tack on some credit card debt to the new refinance since the 2.5-3% rates are much better than what we are currently paying.

We owe around 60K less than the house is worth so there is room to add the debt and not be over the value of the home.

Any ideas?

Where I live you can do that as long as your total debt is less than 75% of what your house is worth. Be sure to get rid of your credit cards or at least lower your borrowing limit if you do that, otherwise you might be back in trouble in no time.

 

[WhitGB]

Thanks for the information. I will look into it further.

Yes, our credit is good. Really just looking to consolidate a few items and roll them into one payment with a much lower rate, and this will also decrease our 21 years left to 15 years while still paying less that I was with the 21 year loan.

This loan all rolled together would be much less that 250K, I dont know what 417K is/does but that is not close.

Thanks again.

 

[bettymae1121]

As long as you still have 20% equity, likely you'll be able to do it. As another poster said, cut up the CC's so you don't rack up debt again, or a year or two from now you'll be right back where you started.