home equity or refin?
Monday, 30. August 2010
We paid 35,000 for our home and are on a 5 yr ballon note w/10% interest rate. We have been here going on 2 yrs. We would like to renovate the kitchen and bathroom. I currently have a small loan w/CitiFinancial. They sent a letter in the mail offering to refin our home w/ the interest rate 11%. The appraiser came out today, but we are not sure yet what the property is worth . We really have no idea how refinancing or home equity loans/lines of credits work,can someone please give us some sound advice please. I read over some of the questions posted here and Im starting to think we may be making a mistake by refinancing our home. Also one last question if we decided not to go with the offer from citi how is stuck w/ the appraisers bill??? thank you
I will be looking online for a mortgage broker as suggested ,meanwhile can anyone suggest a few good mortgage brokers. And wouldnt the Rate be determined by my credit currently 625. Also,is it fact that each inquiry will need a credit check and therefore it will post on my credit report which brings the credit score down 3 points per inquiry. I am concerned about this. Im currently at a 625 with a thin crdit file however Im slowly building my credit by making my pymnts to my vehicle and loan and credit card. I will be taking the advice from the posters and look for other alternatives or at best a lower rate. Thank you all very much
I understand that the appraisal fee’s are coming out of my pocket if I am to take the loan through citi financial but they did not say anything about who covers the fee if I dont take the loan. Could I be the one responsible even if I turn there offer down?