Is refinancing a good choice for us?

Dannie
My husband and I are empty nesters in our early 50's. We own a home with a first mortgage of $130, 000 at 4.625% and a Home Equity Line of Credit of $45, 000 at 8%.The house is worth about $400, 000. We need cash for home improvements and to purchase a new $20, 000 power wheelchair for me. Insurance will only cover $3, 500 of the chair.My husband is worried about retirement in 12 years and having a 30 year mortgage. We're not tied to the house and when he retires will probably sell. Is Refinancing now to get cash out for our immediate needs a good choice or is there something else better to get the money we need? Like dipping into the Roth IRA.

Cherish
Increase your credit line on the home to include the wheelchair. Pay additional principle if you can. You are at under 50% loan to value. When you sell and down size in 12-15 years you should be close to having your Equity Line paid off and depending on when you took outthe 130K loan (judging by the rate I would say 3-4 years ago) you will have it rduced as well.Hope this helps and good luck

Angele
1. If you want to make comparisons using very accurate data, get quotes from different lenders or brokers on the same day. Mortgage quotes change daily. At times, they even change several times in one day.2. When you compare terms, compare mortgage quotes for similar lock periods. A lock period is the specific span of time that guarantees implementation of a certain rate. As a rule of thumb, longer lock periods have higher rates. Lock periods are generally offered in increments, like 15, 30, or 60 days.3. Compare mortgage quotes that have the same points, such as zero or one. In the mortgage business, a point is the term given to a rate. Three points, for example, means three percent. Mortgage quotes follow a tiered pricing. This gives you the opportunity to buy the rate and bring it up or down. How? It's very simple. To make the points decrease, increase the mortgage rate. To make the points increase, reduce the rate.4. In the quote you ask for, ask that the quote loan be separated from associates fees. Property taxes, home insurance, and pre-paid interest are not lender's fees. What falls under lender's fees are the following: standard title, appraisal fees, and processing or underwriting charges.5. Compare mortgage quotes of the same type. There are many types of mortgages. There is a buy-to-let mortgage. Then, there are also self-build mortgage, right-to-buy mortgage, and reverse mortgage. The terms of your mortgage could change along with the type.

Gladys
First of all it might be a good idea to refinance and combine the 2 loans on the home cause you are paying more cause you are paying interest on 2 loans when you could just be paying interest on one. Secondly you need to be sure about that value of the home. Contact a realtor and ask them to do a Comparative Market Analysis on your home(its free). This will tell you how much your home is really worth. If its truly worth $400, 000 then when you refinance take out how much you would need for the immediate needs. This will ensure that after he retires and you all sell you will not end up in the red. Get the market analysis done because you do not want to take out more from your home then it is actually worth.

Lizeth
At this stage of life, I would recommend you speak with a financial advisor. We don't have your whole financial status and would be hazzarding a guess that could cost you money. So be wise, get professional assistance.

Gregorio
Terrible choice! Please speak with a reputable financial planner! Do not refinance!

Clarice
at this time in your life do you really want to start another 30 year mortgage? you won't get a better rate than you have now. think hard before you make the mistake of many other couples who keep refinancing just because the banks make it easy. they are the only one who come out ahead...