re: Questions about a home loan or refinancing?

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heypaul

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In a nutshell...it just depends.

What is your current rate? How much longer do you plan on staying in the house?

If you already have a great rate then it doesn't make much sense to refinance and pay all the extra closing costs. If you can knock your interest rate down a good bit then it might be worth it to pay all the closing costs to refinance and get cash out.

A home equity loan or HELOC is a great option if you do not want to touch your primary mortgage. Closing costs are quite low and it would be a payment separate from your mortgage. HELOC's are revolving lines that are generally open for 10 years and a minimum payment must be made monthly, sort of like a credit card but with very low (yet variable) rates. HE loans are fixed payments for a fixed amount of time with a fixed rate.

Do NOT go get an appraisal on your own. The banks will not accept it as they will have to conduct their own.