NoleSkin21 Posted September 21, 2010 Share Posted September 21, 2010 Anyone out there have any information on who would be able to help me out with a home renovation loan? Basically we have a home now, and we want to put a 40k addition onto it. My interest rate is kinda high (6.75) b/c I bought it 8 years ago, and if I add 40k to the current loan and get it around 4.5 or so, my payment would be less than what i currently pay. I've worked with Wells Fargo and they are ridiculous. They want to charge me almost 7k in closing. I don't think a home equity loan would work, b/c these days I'm not sure the equity is there. Any ideas? Link to comment Share on other sites More sharing options...
China Posted September 22, 2010 Share Posted September 22, 2010 We just finished an addition to our house. We simply refinanced our mortgage and made the loan for the extra amount. Pay off the original loan with the base amount and then take the extra amount as cash out to pay for the addition expenses. Find the lender that'll give you the best deal on interest rate and closing costs. Link to comment Share on other sites More sharing options...
chipwhich Posted September 22, 2010 Share Posted September 22, 2010 Anyone out there have any information on who would be able to help me out with a home renovation loan? Basically we have a home now, and we want to put a 40k addition onto it. My interest rate is kinda high (6.75) b/c I bought it 8 years ago, and if I add 40k to the current loan and get it around 4.5 or so, my payment would be less than what i currently pay. I've worked with Wells Fargo and they are ridiculous. They want to charge me almost 7k in closing. I don't think a home equity loan would work, b/c these days I'm not sure the equity is there. Any ideas? If your interest rate is 6.75 for thirty when you could be at 4.275 for thirty then you are either WAY upside down on your mortgage, or just stupid No offense but it sounds like you don't have any equity to make a loan. Money is available if you have it in equity. If not, it's a tough sale. Link to comment Share on other sites More sharing options...
BadKarma Posted September 22, 2010 Share Posted September 22, 2010 So Wells approved you for a loan which brings your rate down a point and a half, get you the 40k to fix your house, your payment goes down, and you are complaining over 7k you wont even have to pay out of pocket? No offense bro but this kind of story is why I got out of the mortgage game, sign that deal. Link to comment Share on other sites More sharing options...
Bubble Screen Posted September 22, 2010 Share Posted September 22, 2010 You should have refinanced that 6.75 loan a LONG time ago. Wake up! Link to comment Share on other sites More sharing options...
Mark The Homer Posted September 22, 2010 Share Posted September 22, 2010 If the loan is upside down, the seven grand can be considered blood money since they are risking a loss if you bail. If the loan is upside down, I'd forgo the renovation and just do a refi and put some equity in the house. Link to comment Share on other sites More sharing options...
NoleSkin21 Posted September 22, 2010 Author Share Posted September 22, 2010 If your interest rate is 6.75 for thirty when you could be at 4.275 for thirty then you are either WAY upside down on your mortgage, or just stupid No offense but it sounds like you don't have any equity to make a loan. Money is available if you have it in equity. If not, it's a tough sale. I"m definitely not upside down. The house appraised for 265,000 and I owe 142k. The only reason I didn't refi before is b/c my wife was not working b/c she has been a stay at home mom with our daughter. 6 months ago she went back to her BSN/RN job and now we're ready for the addition to the house. We're adding a 2 car garage and 18 x 20 family room. I wanted ideas on who to deal with. I know these mortgage companies want to be competitive so I'm sure I can find someone where I can pay less than 7k out of pocket. I guess a home equity loan would be another option. Just trying to find the best deal. Link to comment Share on other sites More sharing options...
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