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refinancing and taking money out
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want2beamom
Love my boys soooo much!!!
Member since 8/06 10164 total posts
Name:
True love doesn't end with happily ever after...
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refinancing and taking money out
We are thinking of doing this, istead of moving we are going to do an addition. If you know anything about this, can you share some info. Do you get a higher interest rate bc of this?
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Posted 9/26/11 1:21 PM  |
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Prudential Douglas Elliman Real Estate
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: refinancing and taking money out
a family member did this. They got the same rate as us (we just refinanced with no add'l money) but their closing costs were alot more because of the additional monies
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| Posted 9/26/11 1:59 PM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: refinancing and taking money out
Taking money out will not change the interest rate. You will have to pay the mortgage tax on the new money though.
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| Posted 9/26/11 2:26 PM |
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want2beamom
Love my boys soooo much!!!
Member since 8/06 10164 total posts
Name:
True love doesn't end with happily ever after...
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Re: refinancing and taking money out
oh, i never thought of additional closing costs
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| Posted 9/26/11 3:54 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: refinancing and taking money out
Posted by want2beamom
oh, i never thought of additional closing costs
If you already have a good interest rate and have sufficient equity in your house, you would be better off doing a Home Equity Line Of Credit (HELOC). That way you only pay the mortgage tax on the amount you are opening the line for... not your entire mortgage.
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| Posted 9/26/11 4:03 PM |
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livdrl112
LIF Infant
Member since 1/11 348 total posts
Name:
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Re: refinancing and taking money out
I agree with PP. HELOC might make more financial sense in your situation. I saw BFCU was offering HELOC's at 2.5%-that's crazy low interest rate! Yes, your payments will be higher than rolled into a 30yr mortgage but the total amount of interest you pay will be much lower. Bankrate.com has some good calculators. One other thing to check if your house will appraise for the total mortgage amount. I am not entirely sure if the bank will take into account the addition being built into the appraisal.
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| Posted 9/26/11 4:42 PM |
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