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Profile picture for Mbetina

Refinance

Hello,

My current mortgage rate is 4.75/30 year. Refinanced in the winter. Owe 158,000 but my current worth is between 200,000-235,000. I would like cash out and pay down some debt. Is it worth it??
  • July 28 2011 - Ellicott City
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Answers (5)

Best Answer

Profile picture for Texas Banker
Try a home equity line of credit if you need the money. You will have no closing costs.

You have a great rate, after cash out adjustments and closing costs it not worth it.
  • July 28 2011
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Profile picture for Mbetina
Thanks!  I already have a HELOC at 4%.  Currently have 6,000 on it. Very quick response! I appreciate it..
  • July 28 2011
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Yes, it very well may be worth it.  For a cash out refinance there are some pricing adjustments, so I wouldn't put it in the no-brainer category.  Depending on the rates for your other debt and how long you plan to stay in the property I think it would be worth it.  You could very likely keep the rate the same that you have no and minimize your closing costs.

I expect rates to be pretty volatile over the next week.  I would recommend a phone conversation to go over more of the options.  I would be happy to help.

  • July 28 2011
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Profile picture for The Mortgage Mark
The max cash out you can take out is 85% of the value of your home.  If you can stay at 80% or lower you will not have to pay mortgage insurance.   Post a loan request and see what options some of the lenders can work up for you. 
  • July 28 2011
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Profile picture for shapiroamg
http://www.zillow.com/profile/Ken-Kopper/

Since you are in MD, speak with Ken and let him help you figure this out.
  • July 28 2011
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