I am thinking of refinancing my house can someone tell me the goods and bads of this?

Donovan
I would like to refinance my home but know nothing about this procedure. can some on help me with this. I would like to pay off my car and a couple of credit cards and figure even if I have to pay more on my loan it will still not be as much as I am putting out right now. I want to have my car paid off when I retire.

Lenora
The good of what your trying to do is consolidate debt which typically reduces your monthly cash outlay but may also include additional tax savings for you at the end of the year since you normally can write off mortgage interest but not interest on vehicle loans and credit cards.The bad is you will be adding to the debt burden on your home and possibly extending the amount of time required to pay off that debt. Your 3 options really are refinance all of your debt into one new loan assuming that your equity in the property is high enough to allow this without adding mortgage insurance, take out a home equity loan (2nd mortgage) and pay off your debt with these funds or three open a home equity line of credit (2nd mortgage) and pay off the debts. Depending on what type of loan you currently have refinancing everything into one loan usually makes the most sense since you will have a much lower interest rate on a loan in first lien position than any type of second mortgage. However if your current loan has a really low fixed interest rate then it may be in your best interest to do either a home equity loan or a HELOC... Basically at the end of the day you need to look at all three options and figure which has the lowest monthly cash outlay and go with that... Your loan officer or mortgage professional should walk you through the numbers, present the products (good/bad of each), give you their opinion and then let you make your choice based on what is right for you.I am a loan officer so I slant towards using a broker versus a single specific lender or bank. I beleive in the broker transaction for a few simple reasons; we run your credit one time and then shop your loan to multiple lenders. If you do this every bank will want to run your credit which will most likely lower your FICO score. Secondly shopping your scenario takes time. We know who to call and what the lender is looking for to give us a good solid quote; not that you can not but I bet you have your own carreer to work on M-F... This is what we do for a living. Lastly we know which lenders programs are geared more towards your specific scenario. I would stay away from companies like lending tree etc unless you really read the fine print and are fine with them selling your 'lead' to every mortgage person under the sun who will then run your credit report prior to speaking to you thus lowering your scores. I have called on these leads before and have been told I was the 20th person to call that day! In reality find someone you are comfortible with and trust. Ask a family member or friend who they have used in the past and if they would either use that person/company again... If you have any questions please feel free to contact me anytime at Kruorock@firstratelending.com or 866-562-6838 x 106.Good Luck!Kevin

Fredrick
I AM A BRANCH MANAGER FOR APEX MORTGAGE I CAN HELP YOU OUT. I CAN GET YOU THE BEST PROGRAM AND BEST PRICING Report Abuse

Dave
The bad is easy - if you default on the refinancing, you could lose your home.You should go to a bank where you hope to take out a loan and they can help you figure out the equity in your home, and how much you can borrow against it depending upon your credit cards and your expenses.Good Luck!

Abby
Another option is that you can do a HELOC or aka home equity line of credit. The good like you stated is you can pay your other debts off and get a lower rate. But you than have a longer payment do to pay your house off. I work with a group of people that do loans, and can probably get you a lower rate then the other lenders. The reason how is because that is not there bread in butter, Plus the will also show you a step by step process on how it works and what to do. Please contact me if your interested I'm here to help.