Just bought house with built in equity when can i refinance?

Candice
I just purchased the home I've been living in from my inlaws. It was sold to us for 109K, and we received a gift of equity for half the price, so after closing fees and such, our purchase price from the bank was only 56K. When the house was appraised, it was actually valued at 139K. So basically, after buying the house, we instantly have 83K worth of equity built in, depending on how the bank feels about the purchase price vs valued price from appraisal. We are wanting to use a chunk of the equity to pay off some credit card bills and do some renovations, somewhere in the neighborhood of 40K. My question is how complicated of a process would this be, is it even really possible, and how soon can I go about doing this?

Evelina
First off, awesome deal!Now to business: in this current market, there are no easy answers. What you "can" and "can't" do depend on so many factors, every loan scenario has to be taylor-fit to a specific borrower.What's I'd recommend is that you meet with a broker you trust (Did you like the one that helped with the purchase? If so, go back to them!) and have them help you explore your options. A HELOC may be an answer, but those are usually on adjustable rated and the market is doing a lot of jumping around right now, and that may be like paying off a credit card with another credit card. A stand-alone second mortgage is another option, but the guidelines on those are tightening down. There are some lenders that let you refi with less than 6 months on title, but if there is a prepay penalty you will have to factor that cost into your cash out.A broker or banker will help you look at ALL the options specific to you and either help you do some kind of new loan right now, or tell you when might be a stronger time to do that.Good luck and congratulations on the new house! :)

Kary
Holy Crap where did you find such a good deal ?? Yes, after around six months some banks will refinance, but often it's a year with many banks. Check out a local broker, pull your own fico scores, photocopy them and ask them what they can get according to these scores (don't let them pull a new FICO unto you accept their terms. If you inquire of your own FICO scores for credit levels from the three agecies, it won't lower youyr score, ; but other new inquires will lower the score.

Diedre
Depending on the lander. 6 months to 1yr before you can take cash out.Don't contact solicitors in this forum. Report them.

Alexander
It depends on your credit score. If you have good credit you should still be o.k.

Carin
Just get a home equity loan.If it were me, I would save up and pay for these things. Having equity in your home is a good thing. Too many people are constantly trying to use that equity. Letting it sit in your house is not a bad thing.