Refinancing the house.

[duh]

Well I'm still in process of painting the bathroom but I'm feeling that now it will get done.  I don't know why the feeling just came over me but it did.  Today I talked to our head librarian and she said they refinanced and she's never had a doubt about it.  So maybe I should.  So it's back to painting and cleaning up.

[Tina]

It seems to be the way to go, Tammy. I hope it all works out for you.

[duh]

either way is good I think.

[bestofour]

If you can get a better rate with a lower house payment how can that be wrong?

[duh]

2 years added on to the length of the loan and i end up owing 50,000 rather than 39,000. 

[sunsoaker]

You just need to weigh the pros and cons of refinancing. How much does the monthly payments change vs what you can fix/repair/update with the cash you get out... and bottom line, what you can live with.

[bestofour]

2 years added on to the length of the loan and i end up owing 50,000 rather than 39,000. 

Barb  is right.  Is the difference in the montly payment worth it for you to add another 2 years.

[duh]

there is only a dollar difference. 

The sticking point is i'm not good at holding on to money.  And that is a big sticking point.

[bestofour]

seriously, 1 dollar?  Are you going to get cash out of it then?

[duh]

10,500 would be the minimum I could take out in order to get the refinance.

[bestofour]

Have you made a list of what you will do with the 10,000.00?  Will it totally pay for something you want to do?  Will it had value to your house?

To be honest I don't know that I'd add 2 years to my mortgage for a dollar a month difference.

[Penny]

Sheri`s right, make a list of what absolutely needs to be done, and what you would like done...and weigh the pro`s and con`s.....its not alot, but adding 2 more years, can be a pain too.(speaking from experience)

[duh]

That's it I don't need the 10,500 right now.  And you can't really add value to a mobile home unless you remodel it and turn it into a stick built.  And that would cost a great deal more than 10,500.  All it would do is mess up my food stamps and health insurance costing me money monthly.

[duh]

Well I mean I could pay off the high credit cards but the rest would be sitting in savings.  It would be great for emergencies but that is what would mess up the food stamps.  I'm not allowed to have that much money in savings.

[Tina]

I am so grateful that I have no mortgages or other debt. I could not handle it all.

[sunsoaker]

Would it be enough for a roof and heat pump?  Still, if you can mange both without the refi, and refi would mess up your monthly living...not sure I'd do it.

[duh]

There is a program where people on assistance can get help to repair their homes.  I'll be applying in November to see if I qualify.  It would be nice not to have to take the equity out to get those things replaced.

[sunsoaker]

Pay attention to the terms on that Tammy. I did that with the first house I had here. I had to use their contractors who did a horrible job. I got a roof, new windows, new a/c and new sewer lines. They did shoddy work. They put a 17K lien on my house for that.  Fast forward a few years, through the "boom". House appreciated significantly. I wanted to refi to get cash out to finish fixing the house, including items they didn't do right. I couldn't refi because of that lien and they wouldn't agree to subordinate. 17K was too much for what I got. And even with the refi, there would still have been way more than 17K in equity. Long story short (too late I know), read the terms carefully.

[duh]

Thank you for the information Barb.  I will definitely check on that.  I'm not having a second mortgage put on the house.   As you say I can refinance and make sure I get what I want.

[sunsoaker]

It's not really a second mortgage.. it would be a lien, which in my opinion is worse. lol. Just be sure to read the fine print, no matter what you decide.

[dodge]

Good luck not matter what you do.

dodge

[Penny]

Exactly......good luck.

[duh]

Yes a lien is worse because it comes from someone else against your property.  I'm sorry this happened to you.  I will read very carefully.

[duh]

Well I am one step closer to the refinance.  The final mirror is down.  I invited Russ over who had a day off so I would have someone here to help me.  He got a spaghetti dinner and I got the final mirror down.  Now today I have to mud the joints and get ready for Holly and her family to come over tomorrow to do the painting.  I've got my fingers crossed that all goes well with this.  With the decrease in benefits the refinance is more important than ever.

[bayou girl]

good luck tammy!