“Is it Smart to Take Equity out of a Home to Pay off Debt?”

“Is it Smart to Take Equity out of a Home to Pay off Debt?”

 

 

 

Good morning Joe,

Thank you for returning my call yesterday. It's probably easiest to communicate through email as I am a nurse and usually can't answer calls.

To recap our conversation, we want to refinance and pull out equity to pay off 2 student loans and a personal loan. We are drowning and have another kiddo off to college next summer!!(urgh) We owe in the 140's I believe and looking to take $190,000 for 20 years. Our home value is between $240 -$250,000 last we checked. The market is always changing. 

I know our credit isn't stellar, but if we can get a mortgage for 5%or under that's better than we have now.

Let me know your thoughts.

Thank you,

Erin

 

I am not always a big fan when it comes to refinancing to pay off credit card debt but in this case the client will end up saving over $1000 per month. The monthly savings will put them in a much better financial situation and help them prepare for the next child going off to college.

 

Image courtesy of StuartMiles/freedigitalphotos.net

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 4 commentsJoe Petrowsky • November 02 2017 06:05PM

Comments

Good morning, Joe Petrowsky selecting the best scenario is one that demands an opinion for a financial expert.... I agree with you on your choice....

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) 12 months ago

Its always better to pay less interest than more, so I would suggest do that any day!!!

Posted by Sham Reddy, CRS (H E R Realty, Dayton, OH) 12 months ago

Good morning Joe. If used properly converting equity to debt to payoff certain other debt makes sense. Being responsible is key! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 12 months ago

As long as the4y cut up credit cards and don't pick up debt again I would be for it.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) 12 months ago

Participate