Most people so far think this idea is crazy. If anyone has a better idea please advise thank you.
I will use all my family’s savings (20,000) , an unsecured personal loan at 8% interest rate for (14,400) & borrow a few grand from a friend. And good bye Home Equity Loan!
Now I am able to Refinance not as I would like but I think its still worth it. Through my credit union I can Refi into a 7/1 ARM at 3.5% APR. (Something I would never had considered until now).
If I do A Fixed rate 30 yr. loan I will get PMI and have to do Escrow and have at least 1% higher APR. Although I am open to this my monthly savings would be much less.
Why I am considering this: Like most I want to take advantage of Low rates, I need to get the co-borrower off the loan. 3rd My wife will never allow me to blow all are savings on something like this again she would rather do some landscaping and or kitchen remodeling with the money I must act fast before she realizes exactly what I am doing.
My loans and other info:
I am current never have missed a payment on either loan. I have no financial hardship.
FICO score 840
Home estimated value – 200,000
My single family home Mortgage is through alliant credit union originated in 2005 at 6.250% balance 183,000 it is not a Fannie mae or Freddie mac insured loan. - My credit union does not participate in any government programs.
>>Home Equity Loan is through chase – balance 38,000 interest rate is 8.05 >>