The Finance Blogger


Questions about Home Equity Loan Refinancing

Home Equity Loan RefinancingWe received a question about home equity loan refinancing from a reader and will answer his questions in our next post. This couple are trying to understand the process of how they can take advantage of the equity in their home to use to complete a number of renovations on their home. They have sufficient equity in their home to either increase their mortgage or add a line of credit that they can draw on as needed.  They want to know about appraisals, legal costs and any other costs as well. This is a common question that many homeowners have especially if they have been in their homes for some time and have paid a significant amount towards reducing the existing mortgage.

Question to Debt Counselor:: Hello, we have a question about home equity loan refinancing. We have a small mortgage balance left on our current mortgage and have approximately $90,000 in equity in our home. We would like to refinance the existing mortgage and use the funds to consolidate some debt and also complete a number of renovations on our home. Our question is ” what is the process to refinance your home and take advantage of the equity in our home. Do we need to have our home appraised and also what would this cost us?

Detailed Questions : Home Equity Loan Refinancing

Do you currently have a mortgage? :: Yes

Home/Mortgage Loan Amount :: $15,000, this is the balance left on the mortgage that is currently on our home

Other Loans, Including Credit Cards:: $4,500 in credit card debt

Are you employed and for how long:: I am elf employed, and have been running my own company for the past 10 years, and the last few years have been very profitable. I am my own boss and have ten guys working for me full time.

Your credit rating to be – excellent, fair, or bad? :: Excellent I think

Gross Amount Per Paycheck :: Varies, but the average is $2,000 every two weeks

Do you agree to have this information published online, without your PRIVATE information of course? :: Yes

Extra information here please (some detail)::

I run a small business providing landscaping services to residences and businesses. We do design as well as construction and maintenance of landscaped plots.

The business is doing very well and I have the money in the company to pay for the renovations etc, however I would prefer to retain the funds in the company to cover equipment renewal and repairs as well as expansion plans. In the fall we trim trees and in the winter time we also clear snow from driveways and parking lots. This work keeps us going all year long and cash flowing in.

In the past we have had difficulty finding someone to lend us money for both personal loans as well as mortgages since we are self employed. They always want to see our companies records of income and our profit for the past three years. We have this information, however we find it very intrusive compared to what other people have to go through. Let us know if you can help us with this refinancing for our mortgage.

If you have a question about debt, loans , mortgages or other financial situations, please feel free to leave a comment with as much detail about your situation as you can. We will try to answer your question in our next post.

For more home equity loan posts, click here.

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One Response to “Questions about Home Equity Loan Refinancing”

  1. i also need some money to consolidate my debt, do you think any lenders can help me?

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