huskyrider

iTrader: (1)

So last night we were knocking back some beers shooting pool bitcching about how this weather is screwing up our ability to do construction work we got into pretty long talk about the best way to do this is without outright paying cash on the barrelhead.

Sitting with 22 yrs left on a 30 @ 5.75% with an easy 125-150k equity in a 500k houise you go to the mortgage lender and apply for a cashout refinance on 15yr loan for about 30-40k above unpaid principle. If the payment is close due to interest savings it'll be sweet but if it comes in noticably more aim at a 20 yr note. I get refinance loans for new pool buyers with this type of note all the time but the big question is will the lender do it when there's no additional improvement to the property to increase the properties value. If it doesn't pan out go for the home equity line of credit so the carrying charges will be tax deductible.
We're construction guys not savy finance guys but the more we drank the better it sounded as the best way.
Are any of y'all mortgage people that may know if a lender will do this when there's no home improvement involved?
Thanks for the insight, you guys are great and funny too LOL!!!

See ya,
Kelly.



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paul235

I'm far from a financial guru but I have to say Head to key bank!! I would never borrow against my primary home for a boat. A boat is a constantly depreciating asset. If **** hits the fan the liability falls on your home. If the loan is against the boat they'll just come and get the boat and trash your credit. Id rather have somewhere to live then my boat....well I think......Not to contradict the other guy but why not put your cash into your home and cars and finance the boat>? If something goes wrong at least you would have a place to live and transportation. Not to mention your going to pay way less interest on a simple interest boat loan then a mortgage no?

Ing

Several good posts and ideas. I went with Americu
boat loans, new and used (max 10 years old)
240 months 4.49% $75,000 +
180 months 4.75% $50,000+
180 months 4.75% $25,000+
144 months 4.99% $10,000+

seafordguy

You're going to have a much lower rate on a home equity loan than a boat loan and the interest is tax deductible. Also, normally an equity line sits in the second lien position meaning even if you defaulted on the heloc they couldn't force foreclosure unless you also defaulted on the first mortgage. Regardless though you shouldn't borrow period if you risk not being able to pay it back.

Dave M

I'm not a mortgage guy but I have done a cash out refi. My bank didn't ask what I was using the money for.

paul235

AHHHH a lot of good info here! Thank you

seafordguy

Yes you can get a heloc without actually improving the house. They are all based on equity in the property. They are stricter now than before the crash when it comes to total loan to value. The best rates now seem to require a 70% total loan to value (meaning your first mortgage plus your heloc must be less than 70% of your appraised value).

tomtbone1993

iTrader: (3)

If he is at 5.75% he needs to refinance boat or no boat.

foosdaddy

Pay cash for the older mechanicaly sound boat. Get a credit card for 0%APR for the 1st year. Then pimp out the boat with the card the way you wish. Keep transferring that card over to another 0%APR every year.

You'll have a good running boat that has your style without the worry of a repo man if times get tough. Just like Tombone mentioned....purchasing the boat is one thing but keeping it running and out on the water is another.

Crude Intentions

iTrader: (1)

My house is at 3.8. Haven't looked into a boat loan yet.