Question by Magaroni: Help me understand mortgage refinancing?
We have about $ 30k in equity on our home, and currently have a 30 yr fixed at 6.9%. I’m not sure if refinancing will help or hurt us. My student loans are at 7.22, but I only owe another $ 3500, and my auto is 1.9% and I owe about $ 6500. I thought about paying those off with the cash from the refi – is that a bad idea since the auto loan is at a lower rate? I thought since the mortgage interest is a tax right off and the auto loan isnt…?
If we aren’t sure how long we’ll be in this house, is refi a bad idea?
I’m pretty confused about this – any help would be greatly appreciated.
Answer by P J
Awful idea to risk your home over other debts.
When was the last time you got an appraisal because you MAY find you have NO equity in your home.
What do you think? Answer below!