Should I refinance my home NOW (of all times)??

[MsDark]

I hate that I didn't do this a few years ago.  There were a few reasons I felt were good at the time, but now I'm kicking myself.  

There are a lot of reasons I need to do this:
Upgrade/home improvements 
Paying off debt balances on accounts with stupid high interest rates and saving me the monthly payments.
Dropping/adding person to my title/deed.

The disadvantages:
Even with a decent credit score, my interest rate would probably double right now (but if I wait they'll probably be even higher, they're projected to go up for the next several years)    
My monthly note will definitely increase 
I'm not sure how much of a credit/equity hit I might take



So even with a monthly note increase, my overall monthly bills will decrease with removing those credit account balances with stupid high interest rates.  And this is just using the minimum monthly payment calculations (I actually throw extra toward these all the time, but then inevitably have to use them for something, like Elvira's emergency surgery of recent).  

And I figure if interest rates ever actually do go back down I could redo and lower my note again.  

Anyone done this recently who has some valuable input?

ExMr and I last refinanced 2012.  My house note is ridiculously low right now and I love it.  

[mostroop]

I never recommend people paying off unsecured debt with secured debt. We never know what the future holds. If something horrible happens to your income, CC companies can take you to court, worst case scenario you declare bankruptcy and the CC debt is wiped out (your credit will be toast). If you put that into your mortgage, they can foreclose. As I said this would be something catastrophic, but it can happen.

Have you looked into transferring this debt to low interest loans or CCs? I know some banks are letting you transfer a balance from one card to one of their new ones (low transaction fee around 3%) with a 0% for anwhere from 12-18 months.

Also look at their closing costs. Those are going to be added into the new note & you'll be paying interest on that too, if you don't pay it up front.

[greysfang]

No way, interest rates are WAY too high. I was just thanking my lucky stars that we closed on the new Denver house in March right before the Fed started raising interest rates.

[no1novice]

I was looking at moving (I have a nice home but the area is very hit & miss) and our rate of inflation has just hit 11%.

It's take repayments from £400-£500/month to at least double that if the interest rates hits the same mark.

If I had a low mortgage payment & tied in interest rate (aka fixed rate) right now, I would not be changing it.

Just my opinion





Good advice from moostrop re loans & cc payments.

[MsDark]

I should also add that my house is worth way more than I owe on it.  Even with a cash out for home improvements and debt relief the amount I would be financing is significantly less than what it's worth.

First and foremost, it's a title/deed change.  But I figured if this is something I can't avoid I might as well wipe out a bit of debt and put some money back into the house while I'm at it.  

But still just looking at options at this point.  But everything I'm reading projects these rates steadily increasing for the next 2-3 years!  

I feel like I'm sort of fucked if I don't do it now.  But maybe I should wait it out at least a couple years if it's at all possible, just to see.  

[trixie]

Ok...couple questions. How many years are left on the loan?

Also don't understand the title/deed change. I assume your ex is still on the deed? And his name is also on your loan?

When I was divorced, my ex signed off on the deed, but his name was still on the loan. I don't think any bank would voluntarily release a borrower but they have no say so who is on the deed. Luckily, my ex didn't demand I refinance to get his name off the loan, he knew I would make the payments, and I was able to refinance in my name only after a few years. I always joked that the mortgage was his last piece of good credit anyway.

[greysfang]

Dark, I'd look into a HELOC instead of a refinance at this point. Can you get a neutral finance person to give you the options?

[MsDark]

I'm looking into this option too. As long as I don't die before I get this dude's name off the property we're ok.

[louiswinthorpe111]

I would definitely look at a second mortgage or HELOC before you refi the first. Then, if you wanted to consolidate into one after rates go down, do that.

[trixie]

Why is his name still on the property? Shouldn't you have settled that in the divorce?