What type of loan (personal, refi, home equity/line of credit, etc.) should we get?
My husband of 3 years and I live apart in two different towns; not far from each other. He owns a condo and I own a 3br home which is in need of major repairs. I owe about $125k and the repairs will probably amount to about $110k. We'd like to fix it and rent it as I live in a college-area. We aren't really sure what type of loan would best suit our situation. I have refinanced twice already within the 19 years I've lived there. Eventually, the goal is to purchase our own home together and rent the others. by dlm_4@yahoo.com from Washington, District Of Columbia. May 26th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
Great question! You can do a cash out refinance using an FHA loan to go up to 85% loan to value in order to attain all the cash needed to fix the home up.
Tom Stevens (Thomas.Stevens)
#21 ranked lender in Massachusetts - 68 contributions
I agree with the previous answer. Given that a personal or home equity loan might have a higher rate than a new first mortgage, I would suggest refinancing. Check with your local bank first, though, to see what they are charging for home equity LOANS. If they provide you with a quote for home equity LINE of credit then you likely could expect your payments to rise as interest rates rise. You could also look into a renovation loan but if you're sure of the costs a refinance would be easier.
Ask our community a question.
Get an answer
Related Questions
