Question
My husband and I want to take about $15,000 to pay off debt and renovate our home, which we just purchased last July. Our current interest rate is 7.25% and we owe about 65k on our home that appraised at 100k. The problem is that our credit is not great and not well established. Which would be the best option for us, home equity loan or refinance?
My husband and I want to take about $15,000 to pay off debt and renovate our home, which we just purchased last July. Our current interest rate is 7.25% and we owe about 65k on our home that appraised at 100k. The problem is that our credit is not great and not well established. Which would be the best option for us, home equity loan or refinance?
Answer
An equity loan has to be repaid in one year or it either will be refinanced automatically by the bank or it will go into default if not paid in a year. Better of refinancing if your credit is not horrible. Chase has no money right now so it would be a horrible choice. Right now National City and Bank of America are the banks that have money to offer credit. I work in the Finance industry.
An equity loan has to be repaid in one year or it either will be refinanced automatically by the bank or it will go into default if not paid in a year. Better of refinancing if your credit is not horrible. Chase has no money right now so it would be a horrible choice. Right now National City and Bank of America are the banks that have money to offer credit. I work in the Finance industry.
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