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| I am refinancing my house. After a new appraisal, I have 55,000 dollars equity. I have the option to borrow as much of that 55k I want and do whatever I want with it. The refinance terms are 15 years fixed for 3%
I have 2 vehicles that I owe 30k on. I pay $1000/mo for both of them. The interest is at 4.75%. No prepayment penalty.
Should I borrow against my house to pay the vehicles off? My house payment will be about $250/mo more, but I'm losing vehicle payments of $1000/mo. So I free up $750/mo
I figured I will pay about $4000 more in interest if I put the vehicles on the home loan and live out the life of the loan, but mortgage interest is deductable. So am I really out anything? If I have a good year I can just pay more for the house loan. I'm not just saying that, I have the discapline to do so. If I have a bad year, I've got $750/mo more to cover monthly living expenses.
If I do this, my house loan will be the only loan I pay interest on. I have about $5000 in loans that are on 0% interest that I pay $300/mo on until they are paid off. What is the NAT approved course of action? | |
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House refi - cash out option
