Cash out refinance vs. second mortgage

[750orDie]

Hi, I recently bought my home and have quite a bit of equity in it already. I owe 173k and it appraised at 240k. I would like to consolidate all of my monthly payments into one. As of now I currently have my mortgage, one car that I owe 20k on and one I owe 14k on and about 6k in credit card debt.

 

I am about to make my second mortgage payment on the first, it is not yet showing on my credit report.

 

Would I be able to either refinance or get a home equity loan? My scores are currently in the 650 range and so are my husbands.

[luckydriver]

what are the rates on all the loans and what is todays monthly pymt fs if you got it in one mortgage?

 

i dont know your particular circumstance but i know what i have my car refi at and it's cheaper than my house lol. 1.49 vs 4.5. you will have people tell you not to replace unsecured debt with secured but thats not always appropriate, but you should consider the statement at least. i did a consolidation back in the 90s but that was on a bunch of CCs. turns out 10 years later i IIB them anyway so that was kind of a waste of money for me.

 

my general gut comment is taking CC and 2 cars and extending them 30 years is not a good idea. but perhaps the heloc would work but i think they only do those to 85 or 80%. youd have to check at your favorite financial institution

 

i've seen comments on this board that cash out is not every ez to get anymore

[road2freedom]

Cash outs and equity loans are tougher these days from what I've read and heard from others. Also, even with that kind of equity, if you are looking to add 40k in debt you will undoubtedly be looking at paying mortgage insurance which is just money pissed away imo and will probably deteriorate any savings you have in mind.

 

Like lucky said, it's hard to imagine the rate on your mortgage would be better than your auto loan. If it is, I would look to refi the car. With the 6k in CC debt I would look to balance transfer offers. You may pay a small fee, even multiple times if it takes a few years to pay down, but it is still cheaper than amortizing it over 30 years.

 

Some positives though are that mortgage interest is tax deductible where the others are not. Also, reducing your minimum monthly obligation is a safety net of sorts, if that's a real concern. I think you are better off going a different route though.

[Brian B The Loan Professor]

How long ago did you buy? For the first 12 months banks will go off of purchased price and NOT appraised value

FHA limits cash out to 85%

Conventional is less....

 

B

[750orDie]

I've just bought my house about 2 months ago, so if they're going to use the purchase price and not the appraised value it's a moot point.

 

While I realize that it may seem like I would be doing myself a disservice my consolidating everything, it would leave a great deal of money in my wallet. I'm planning on making double mortgage payments to pay my house off in 10 years. The second mortgage would also be for 10 years as well.

 

I may go speak with NFCU just to see what options are available. They've been very generous with me in the past.