Question by star: Has anybody applied for a mortgage refinancing to consolidate credit cards?
And if you had, did the mortgage people had to issue themselves the checks to the credit cards or you did? Thanks.
Answer by Dr. Deth
they would just give you the cash, but you would need to have at least 20% equity in the house after th refinancing – say you have a house worth 200,000 and your current mortgage balance is 150,000. (that is 25% equity (50,000/200,000) You could only refinance for 160,000 (80% x 200,000) and you’d only be able to cash out $ 10,000 minus any refinancing costs, points, closing costs, etc
What do you think? Answer below!