My last ditch effort to REFI Please Advise.

[xbobx]

Most people so far think this idea is crazy. If anyone has a better idea please advise thank you.
My plan:
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. 3^rd 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>>

[JustSharon]

I don't know whether your idea is crazy or not. You say you have no financial hardship, so I guess this is all about saving money on the interest. Without specific figures regarding your monthly income, expenses, etc., it would be hard to evaluate. Also, you mentioned that you have to get some co-borrower off the loan. It was not clear why you have to do this, or whether there is some court order or deadline. I am NOT suggesting that you provide that information online. Only you can evaluate your personal financial situation.

Since you have a $200k home, I imagine that your annual income is something in the $75k to 100k range. If so, you really should have $30k to $50k in liquid savings -- not $20k. So you surely have to think about what you would do with no savings at all if you lost your job or had some emergency. And you would certainly need a plan to rebuild that emergency account quickly with savings from your refinance plan.

In my personal opinion, what would be truly crazy would be to spend that $20k on landscaping or a kitchen remodel! Emergency savings are for emergencies or major problems -- not for redecorating. It is that kind of thinking that got an awful lot of people in trouble in the past several years.

I am also concerned that you want to do this without your wife realizing what you are doing.