Financing -- Loans/when to refinance
Thank you so much for your time. My husband and I have been paying a mortgage on a house for the past 12 years. Our interest rate is 6.050%. We have a lot of debit we would like to pay off and was thinking about refinancing our house. We would like to get cash to pay off some credit cards and a car payment. Is that something that would potentially be possible and what fees are there usually in doing so. I know that it is impossible to get a pin point answer but generally speaking is this possible? We live in Arkansas, and we only owe 42,000 on our home. What house appraisal amount would we need to have in order for this to be an option? Sorry for so many questions! Thank you again for your time.
Yes, absolutely it's to your advantage to pay off high interest rate credit card through a cash out refinance. You can borrow up to 80% of the value of your home on a conventional, 85% on an FHA and 90% on a VA loan. FYI thought, I would advise against paying off a car loan and the reason I say this is; I feel it's not a smart move to pay off something that's short term and has a time frame to pay off, just my thoughts though.... :)
Thanks, and good luck!
Sr. Loan Officer