refinance or 2nd mortgage?

we bought our house about 18 mos. ago for $ 180,000 in Colorado.

Better to refi or do a 2nd mortgage?

(need cash fast!) HELP!

8 Answers

Relevance
  • Anonymous
    1 decade ago
    Favorite Answer

    Which has the best interest rate and associated costs??? How good or bad is your credit??? There are too many variables for us to answer but your local bank of choice can help with the options you have. Just remember, alot of those bankers selling services are on commission so they may not always tell you YOUR best option but their own however they must disclose the fees to you up front and you can take it from there.

  • 1 decade ago

    Need to look first if the value of the house has gone up a lot or not .If the value of the house has gone up a lot then refinance would be a better idea .Or else you can do either .For getting better mortgage rates you can contact me at kishaloy_bhowmick@yahoo.com or call me at 480.751.4125 . My company provides mortgage at the most affordable and decent rates .Our rates are in the higher fives and lower sixes and you won't ever face any problem from any sort of credit problem is not a barrier for us .

    regards,

    kish

  • 1 decade ago

    It will ultimately depend on the current value of your home and your current credit score, sometimes a second mortgate or an equity line of credit will work best when you don't have much equity and your credit will not allow you to refinance for an amount that is close to 100% of your home's current value, sometimes the max is only 80 percent of your home's current value for a traditional refinance.

    The lending matrix for equity lines of credit is a bit different than traditional refinancing so the final yield (cash out) will be higher because it takes into account the future value of your home. Well atleast mine did.

    Your local banks are the best bet for equity lines.

    Hope that helps.

  • 1 decade ago

    Look at the fee, Interest rates and find out which one works better for you.

    Normally refinance for a lower interest rate. A second mortgage is normally used if your over spending and need to payoff credit cards. But a refinance can do that too.

    Only refinance if the interest rate are a lot lower.

  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    its better to refi, because the HELOC is usually used for home improvements.plus you will have an extra 400 a month in HELOC Charges. a debt consol/refi is your best bet. i saved the last guy a NET 1200 dollars a month, i put 15,000 in his bank account(and showed him how to invest it to get a million dollar return in 15 years, so he can retire and put his kids through collage,) and his house will be paid off in 20 yrs, so he has a 900,000 dollar free and clear asset, that he can sell, or borrow against in 20 yrs, or sooner. and he closed his loan in 1 week. if this is the kind of service you need. call me, i dont charge any app, pre-qual, or consultation fees, and will stucture a loan for you that can virtually pay for itself.(no obligation on your part) i am a debt refi qualification expert. call me on my cell phone anytime 203-410-4427, or at my office mon-fri 9am to 5pm EST, 203-729-8900 x-111, ask for david powell. we can do upto 95% LTV , with no mortgage insurance, and i have a wonderful equity builder loan program that is used by allen greenspan himself. i want you as a client, lets get started.

    Source(s): David Powell, Vice President/ Loan Officer Oakwood Mortgage Group & Assocs.
  • 3 years ago

    you are able to refinance any own loan you like, if somebody will own loan you the money. costs on a 2d are continually going to be bigger than a known own loan or a refinance of the completed volume. What you're in all probability working into is own loan companies do no longer desire to non-public loan decrease than a undeniable minimum volume. Your 2d may be decrease than their minimum lending standards (no longer that they won't do a 2d own loan.) additionally, your costs at the instant are not that undesirable in the present industry. What it particularly is beneficial to do is attempt to repay that 2d as at as quickly as as plausible. That relies upon upon what different debt you have and at what fee. in case you haven't any longer any severe activity debt (credit enjoying cards; automobile loans with a a strategies better fee, etc.), then initiate including any added funds you are able to to repay the 2d as at as quickly as as you are able to. except there became a comparatively unscrupulous corporation, no 2d own loan i've got considered had any prepayment penalty. in the present industry, with out paying an significant volume of things, i do no longer see you getting an identical fee on your first.

  • bianca
    Lv 4
    1 decade ago

    equity line is cheaper- almost no closing costs, but it depends for how long you need this money, interest rate on your current mortgage e.t.c.

  • Anonymous
    1 decade ago

    it all depends on what interest rates you are holding on your current loan(s). Talk with an experienced Loan Officer to walk through your situation with you...

    Source(s): more on home equity loans, http://www.choicefinance.net/home-equity-loan.htm
Still have questions? Get your answers by asking now.