Need advice on how to close out equity loan?
Tuesday, 24. August 2010
Have mortage loan at 100K (currently 1/3rd below value of home) Took out a 50K equity loan 3 years ago (needed for emergency reasons) – originally paid monthly interest around 5.00 but over time has jumped to nearly 0 just interest. This is killing me to pay each month for last 2 years. Credit rating is slightly mid-average and my income does not qualify me to merge both morgage and equity balances. I would appreciate any advice on what options I have, I am at a lost what to do.
bowler_j Says:
It sounds like you have $150K equity left in your house.
A mortgage refinance should wind up costing you less than the two mortgages you have now. I don’t see why your present first mortgage holder wouldn’t consider refinancing for you.
If it won’t there are hundreds of mortgage lenders desperately fighting for business. Get online and shop around.
You can use a site like Lending Tree that gives you four offers or E-Loan which promises the lowest rates.
Unless your credit rating is really in the tank, I think you will find some lender will to do the refinance for you.
If you are a bad credit – or subprime – borrower, watch the fees and make sure that the refinance pays for itself over the next two or three years, if not sooner.