Need input on idea

Debbie in Wa · #1 08/03/11, 01:41 PM

With this scenario would you do this?

You only have x amount of dollars coming in and am not able to work outside the home. Your income covers only the bills that you currently have. Now you have x amount of doctors bills coming in that would exceed your income budget.
You have a credit card bill that has higher interest than your home loan and your home loan is at a 17 year pay off.

Would you think about refinancing the house at a 30 year to bring in the extra money so that you could pay off the doctors and credit card bill faster and then refinance again in lets say another two years back to a 15 year mortgage?
Of course if the bills were paid off then a double payment towards the house could be doable too, to help pay it off faster.

Any thoughts

Alice In TX/MO · #2 08/03/11, 02:06 PM

Your crystal ball tells you that interest rates will be WHAT in two years?

mistletoad · #3 08/03/11, 02:18 PM

I wouldn't do it and believe it makes no sense to convert an unsecured loan into a secured loan, especially with your home on the line.

But if you really wanted to refi your house, then a 15 yr term that taps into your equity would be better than a 30 yr loan with another refi down the road. Each refi adds large fees to the balance owed and you have no guarantee that you will qualify for a refi in a few years or that interest rates will be favourable then.

Pam6 · #4 08/03/11, 02:22 PM

If your budget is that tight can you go to the financial aid office at the doctors office or the billing person and show them what your ability to pay truly is and ask for lower payments or for some charity help?

mary,tx · #5 08/03/11, 03:09 PM

Quote:

Originally Posted by Pam6

If your budget is that tight can you go to the financial aid office at the doctors office or the billing person and show them what your ability to pay truly is and ask for lower payments or for some charity help?

This would also be my suggestion. Renegotiate your medical payments, and ask about charity.

I would not refinance the house. As noted above, there are large fees involved with that, each time. And in my mind, it is more important to be able to pay off your home than the med bills.