Equity Loan, Refinance, 2nd Mortgage... What should I try?
I bought my first home a little over 3 yrs ago, the carpets need to be replaced and a few other things need to be done the stuff that's been here long before I puchased the house. I would like to somehow get a loan (maybe added to my mortgage), but I really don't know how any of this works... better to ask then not know. I would like to fix up the house a little right around $8,000.00, maybe pay off a couple of tiny credit cards totalling around $2,500.00 and possibly have enough to help start up a small business?! Is this even possible? Or do you not use the extra money in this manner? Is there a certain loan type other than the suggested ones at the top? by Ginger Streeter from Holly, Michigan. Oct 7th 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
The answer to all your questions depends on how much your home is worth, how much equity you have... and how much cash you need. You could take out a 2nd mortgage or do a cash out refinance, but the best suggestion I can make is to contact a local mortgage broker, NOT A BANK... they have a vast number of lenders they deal with and can find the right loan product for your particular scenario. WilliamAcres.com
Robert Hanson (rhanson)
#38 ranked lender in Maryland - 646 contributions
As mentioned by William, the equity in the house is the key. As a nationwide bank with the ability to broker if it behooves your situation, we can generally provide a wider range of options than most banks or brokers. Feel free to inquire if you wish!
Bill Holmes (bill@a2mc.com)
#11 ranked lender in Michigan - 7 contributions
Hi Ginger,As mentioned, how much your house is currently worth is the key variable here. and then comparing how much you still owe with how much the house is worth. For example, if you owe $90,000 and the house is worth $100,000 then you will probably not be able to take any 'cash out' of the home. Most programs require you leave 15% or more of the value in your home - in the home. While I am not a bank nor a broker; I am a correspondent lender who works with a few different big banks but also uses my company's funds in the short run, I actually recommend going to a bank for a 2nd mortgage.Typically, banks will let you do a home equity line of credit a smidge higher than I can' maybe with a remaining 10% equity in the home; which could be all you need!If oyu need a referral I'd be happy to share what I know.Good luck Ginger!Candace
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