Should I take out another home loan?
Posted in Personal Finance on 05/27/2009 08:53 am by admin
rollsrock18 asked:
I’m trying to make a financially sound move, deciding whether or not I should take a second mortgage or home equity loan against the equity in my house. Here’s the scenario: 670 median credit score, debt to income is about 40%. House appraised for about 100K, still owe 60K. I have credit card debt and I want to also do home improvement. I have three credit cards, two of which are maxed out because I’ve been doing home improvements with the availability on them. I want to use about 20K in equity to pay off the cards, and use about 5K of it for home improvement so I can sell the house when the housing market improves in a few years.
I’m trying to make a financially sound move, deciding whether or not I should take a second mortgage or home equity loan against the equity in my house. Here’s the scenario: 670 median credit score, debt to income is about 40%. House appraised for about 100K, still owe 60K. I have credit card debt and I want to also do home improvement. I have three credit cards, two of which are maxed out because I’ve been doing home improvements with the availability on them. I want to use about 20K in equity to pay off the cards, and use about 5K of it for home improvement so I can sell the house when the housing market improves in a few years.
Should I go for it?
CARROLL