Equity and lower payments - Posted by KenD

Posted by Bud Branstetter on March 01, 2001 at 22:21:49:

On the series 7th heaven the oldest girl had gotten herself into a problem. The car dealer and the credit card company both told her they could lower her payment by stretching it out over a longer period of time. You may be able to do the same. By doing a refi you may be able to get a lower rate. This would cut your payment. By reamortizing you also lower your payment. The downside is that the costs are generally added to the balance and makes the payment a bit more. The old adage is to refi if you can save the extra cost in a few years. This means an interest rate about 1 1/2 to 2% lower than you have now. You pay more in the end unless you get your act together and save money in the future to pay it down.

Equity and lower payments - Posted by KenD

Posted by KenD on March 01, 2001 at 12:00:07:

I currently have a house which has appreciated nicely in the last couple of years. I also have some debt where I would like to eliminate the monthly payments. Short of selling the house, is there any way to somehow use the equity to pay down the debts but not increase the mortgage amount?

Ideally, I would like to come out of the deal with the debt gone and a lower mortgage amount. I know I could do that if I sell the house, but I would like to avoid that if possible.

Thank you in advance for any ideas!