203k vs home equity loan?We are remodeling and have been offered a home equity line of $10k and a 203K-style FHA. We plan on staying in the house for 5-7 years and currently have a 6.25% cconventional with .50% of that being lender paid PMI. We can do the $10k for the remodel but would prefer more like $20k, but we do not have enough loan to value to gget higher (currently at $192k owed on around $215 value). WHAT TO DO?! If we refi with the 203K we are stuck with FHA PMI for 5 years, AND we lose all of the equity we have put into the house as we will get another 30 year loan. Should we take the equity line and wait until after the remodel and take our chances on a refi without PMI since in theory we will be closer to being below 80% loan to value? Or should we try the 203K? Thank you!!February 25 2011 - Columbus00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.