About 3 yrs ago I took out a Home equity line of credit for home improvements. ?

Question

I have very little left from this loan, and I guess I have no equity now. The finance charges are high, even with the rate coming down because of the economy. Should I refinance now jsut to get rid of the loan charges? I wanted to sell in about a year.

To answer your question Ed Atun, well I guess I did because I made many home improvements over time, if that's what you mean. Some of these include kitchen cabinet refacing, siding, new furnace, some new windows, kitchen and bathroom tiling and new shower, vanity. So its not that I went and splurged it on myself or anything. I guess the thing I have to do is pay off as much as I can, and then hopefully sell in a few years rather than one.

I had to redo the question because I messed up here--sorry.

Answer 1

Without more information, it would be impossible to say whether or not you should or could refinance the home at this point. If you think that you are close to 100% combined loan to value, refinancing will be difficult and expensive. So if you are planning to sell in the near future, the expense would in all probability negate any benefit. That is it would cost you more to refinance than you would save.

Furthermore, if you owe nearly what he home is worth now, you will have a difficult time selling it as you will likely incur some kind of selling costs. Maybe the thing to do would be to concentrate on paying down the balances (highest rate first) so that you have some room to negotiate when you are ready to sell.

The best thing to do would be to talk to a mortgage professional that you can trust to advise you and not just sell you on a refinance. If you don't already have someone to use, ask your friends, family, neighbors or co-workers if they have someone they would recommend.

Good luck.

Answer 2

I am not going to  say I am one hundred percent sure about the answer.Besides it really depends on the personal feelings.SO it would better for you to find yourself.Here is a good resource.http://home-loan.online-frees.info/home-...

Answer 3

ok since you now say a few years then yes look into it as soon as you can since rates are still pretty good. But 1 year now way should yourefi and probably not even 2 years

I am a mortgage banker in Tn & KY

Answer 4

Pay down this loan

If you have no equity, you can't refi

Make payments every month and get this paid off, put extra money towards it

Answer 5

if you have no equity - it might be tough to refi

Answer 6

Unless your HELOC interest rate is ridiculously high, you are paying what you have to pay for the amount of money you have borrowed against your house.  If you refinance, you may be able to lower your monthly outlay, but you will still end up repaying the entire amount with interest.

You may have an issue if you have negative equity.  These days, you cannot get a mortgage loan for one cent over the appraised value of your property.  In fact, you will be lucky to get a mortgage for 100 percent of value.  Check around to see what you can find.