Refinance opinions needed

[Mr Spooky]

I am about to start the refinance process on my house and wondering some opinions on how much equity to take out. We have a little over 100k in equity in the house to take out. Part of me says take it all out while the home prices are high, but on the other hand if the prices take a dump then we can be upside down.

We can afford the payment to take the full equity out, and we are only 4 years into our current original loan.
What do you all think? Any advise?

thanks

[Irving]

My advice is to not take anything out. Streamline refinance for the lower interest rate and lower monthly payments (by starting over at 30 years with a lower rate and a lower principle). Why are you considering taking out any equity at all?

[Mr Spooky]

To drop the PMI and was planning on getting the bathroom out of the 60s.

[newracer]

Take out what you need to make the improvements and pay off any other debt that is at a higher interest rate.







And maybe a little more to buy a cool firearm.

[Irving]

Paying off higher intrest debt is an option, but you'd be paying on that option for the next 30 years, which will probably not end up the better scenario in the end. Same with the bathroom.

[kwando]

Call your mortgage first, Citi was able to remove PMI for me with only an appraisal. Kept the same terms, no refi, etc.

[Irving]

How can you get rid of the PMI if you take out a loan on the entire appraised value? Won't that put you right back at 98/2 ratio and keep the PMI on the loan? Plus, since the loan amount is higher, the PMI would go way up. Not to mention your base payment would go way up as well. If you can afford all that extra payment, then you should be paying for the bathroom remodel in cash anyway.

[newracer]

Paying off higher intrest debt is an option, but you'd be paying on that option for the next 30 years, which will probably not end up the better scenario in the end. Same with the bathroom.

Unless you continue to make the same payment towards the debt.

[Irving]

I guess it depends on the higher interest debt and what he is realistically able to pay to get them paid. Also on whether he even has other debt, since we just assumed he does.

[newracer]

I recently refinanced my house to get a lower interest rate and pay off some debt. The company I used wanted me to take enough to pay off a car loan I have. The car loan is a lower rate than my mortgage and of course a shorter term. The guy was kind of surprised that I questioned it and told him no to that portion.