three years ago we refinanced to a 30 year, 4.9 mortgage. we paid off all debt and embarked on a kitchen remodel. Halfway thru the remodel (at the absolute point of no return) I was laid off. I found another job seven months later, but in the meantime we had to power thru–scaling back to barebones the remodel–by using credit cards to pay to have the house livable again.
I earn approximately $80,000 a year. I have 27 years left on a 30 year loan at 4.9. The mortgage has about $250,000 left. I need to get rid of $65,000 in credit card debt that is ‘drowning’ us. Zillow sets our home value at approximately $340,000, but the reality is, our neighborhood would probably appraise higher.
Should we attempt to refinance–with a cash out– since rates are approximately 3.9? Home equity? Do nothing? Are there other options? We have no car payments or debts other than the cards.
Any suggestions or guidance would be greatly appreciated since this is unknown territory to us.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.We Have a Bunch of Equity In Our House But Way Too Much Credit Card Debt. - Lisa by Steve Rhode