tp1260 asked:
Here is the deal, i own a home in st.petersburg florida valued at around 200,000. I have owned the home for a little over 2 years now. The purchase price was 120,000. I pay the mortgage to the previous owner on a monthly basis of 689.00. It is a 30 year loan, at a fixed 6 % rate. In september, in order to keep up with my property and insurance taxes, i took out a home equity line of credit with bank of america. Right now, i have used about 6500.00 of the 25,000 limit(it is a 10 year HELOC). If you were in my position, what would you do?. Just keep paying on both these loans like i have been, or seek to refinance the entire amount, to pay off the previous owner, and the HELOC. Thank you for your time.
I did not need a bank, since the previous owner totally financed the 120,000 minus the 5,000 down payment.
Unsecured Loans
Here is the deal, i own a home in st.petersburg florida valued at around 200,000. I have owned the home for a little over 2 years now. The purchase price was 120,000. I pay the mortgage to the previous owner on a monthly basis of 689.00. It is a 30 year loan, at a fixed 6 % rate. In september, in order to keep up with my property and insurance taxes, i took out a home equity line of credit with bank of america. Right now, i have used about 6500.00 of the 25,000 limit(it is a 10 year HELOC). If you were in my position, what would you do?. Just keep paying on both these loans like i have been, or seek to refinance the entire amount, to pay off the previous owner, and the HELOC. Thank you for your time.
I did not need a bank, since the previous owner totally financed the 120,000 minus the 5,000 down payment.
Unsecured Loans
Tags: Bank Of America, Home Equity Line, Mortgage
5 responses to If you owned my home, what would you do?
Student Loan Refinancing
I think you have the right idea by seeking to pay off both of the loans with one of your own….however, I do think that 689 is quite low and your new bank loan would be MUCH higher.
Is there any way you can have an apprasial done since that is quite a huge jump in value (80k) over the course of two years…..
Is there a reason that you decided NOT to finance with the bank in the first place?
If you owned my home, what would you do?
Student Loan Refinancing
It sounds as if you are are having trouble affording the home when taxes and insurance are includeed. This leaves you two choices.
1. If the value of the home has reall y gone up that high in 2 years, you should sell the home. this would leave you with around 55,000 To put toward a more managable house.
2. You can look at refinancing the home including all your current debt to lower overall outgo. When you do this, you may need to look at buying down points to get the percentage rate down. Current rates are in mid 5s, but high 4s will be a more managable payment. Make sure you get a fixed 30 year loan and start paying off.
If you owned my home, what would you do?
Credit Report
you should be able to do a refinance that rolls both loans into one since you have some equity in your home. if it were me–i would look to refinance and pay off the previous owner (especially if you’re paying an individual that might possibly be a friend or family). then you’ll have 1 payment and it should be fairly easy to handle. just make sure you get a fixed interest rate on the refinance. check with a local bank before going with bank of america
If you owned my home, what would you do?
Mortgage Finder
Check out your opitions with a bank seeing what they would offer to get one loan. You’ve got a pretty good deal with the lender financing, so don’t dump it too quickly. Don’t increase your HELOC. Your property value may not be $200000, in this market values are static or declining. Don’t increase your indebtedness. Only change if there is a significant advantage to you. Remember any refinancing has costs.
If you owned my home, what would you do?
Mortgage Finder
You will pay several thousand dollars to refi this. YOu didn’t say what interest rate your HELOC is at, but I’ll assume it is higher than 6%.
Are you planning on staying in the home for at least 4 – 5 years to make it worth paying to refinance? If so, you can look into it, doesn’t cost you a thing but some of your time.
If you owned my home, what would you do?
Leave a reply to If you owned my home, what would you do?