i currently hve 10yrs and 190,000 left on my mortgage and my home is worth 490,000 my rate is 5.22 but i need ?
by Mortgage Rates on Sunday, October 24th, 2010 | 4 Comments
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shop around and compare the rates. make sure you can afford your new payment, there are 10 year loans and 15 year fixed loans out there and they have lower rates than the 30 year fixed. do you have a credit union? you should start with them first if you have one…or go to your bank and see what they can give you.
also, be careful of the fees that you are charged on the Good Faith as well. the higher the rate the more money they are making in the back end. i know mortgage brokers are required to disclose that to borrowers (but in most cases borrowers are not even aware of that till loan docs are ready) but I’m not sure if banks are required to. when i worked at a bank, we were not required to disclose yield spread, but that may have changed..
Also check into getting a home equity line of credit instead of refinancing the entire thing. That may be a better option.
You basically have two options.
You are refinance the entire balance you owe, then take some of the equity out of the home in one lump sum and do your improvements. However, I don’t think you are going to get an interest rate as good as the one you have now. Plus there will be closing costs to pay.
You could take out a home equity loan or a home equity line of credit, but the interest is typically higher.
If it were me, I’d be comparing what rates are available now, look at how much money you need, then make the decision. My guess is that the home equity loan is going to be a better option.
You can find a number of options here