Mortgage refinance question

[Deleted]

So Canadian may make a difference

We are
Refinancing because we have oodles of debt at crazy interest rate vs 2.6% for our mortgage. Don't judge. Thanks.
But we need an appraisal (makes sense) and a lawyer? What does the lawyer do?

[lys]

Do you currently have a high interest rate on your mortgage or are you looking to pull some equity out of your home?
I HIGHLY discourage you from pulling equity out and look at other options to find money to pay off your oodles of debt.

[iheartbanjos]

I have bought houses in 3 different states in the US. One state required an attorney at closing. We just did the closing there instead of a title company. He explained what we were signing and made sure everything was all set to close. The cost wasn't much. I think $500.

Are you thinking about turning unsecured debt into secured debt? No judgment on the debt, but please realize how dangerous this is. A high interest credit card is not a good reason to put yourself at risk of losing your house.

[LoveTrains]

The lawyer is there at closing, at least in my RE transactions. I, as the buyer, selected the lawyer to review the P&S and other sale documents to be sure that my needs were being met as the buyer.

[Deleted]

Mar 31, 2015 11:31:54 GMT -5 iheartbanjos said:

I have bought houses in 3 different states in the US. One state required an attorney at closing. We just did the closing there instead of a title company. He explained what we were signing and made sure everything was all set to close. The cost wasn't much. I think $500.

Are you thinking about turning unsecured debt into secured debt? No judgment on the debt, but please realize how dangerous this is. A high interest credit card is not a good reason to put yourself at risk of losing your house.

It would take us 5-8 years to pay off the cc debt and we would be screwed if we have an emergency. The good news is that if we sell due to a bigger emergency, we would definitely get the value for our home. And even of we lose a bit- it's not even close to the oodles of money we lose at 17% (rate on cc)

[illgetthere]

Mar 31, 2015 13:02:43 GMT -5 @hannymaren said:

Mar 31, 2015 11:31:54 GMT -5 iheartbanjos said:

I have bought houses in 3 different states in the US. One state required an attorney at closing. We just did the closing there instead of a title company. He explained what we were signing and made sure everything was all set to close. The cost wasn't much. I think $500.

Are you thinking about turning unsecured debt into secured debt? No judgment on the debt, but please realize how dangerous this is. A high interest credit card is not a good reason to put yourself at risk of losing your house.

It would take us 5-8 years to pay off the cc debt and we would be screwed if we have an emergency. The good news is that if we sell due to a bigger emergency, we would definitely get the value for our home. And even of we lose a bit- it's not even close to the oodles of money we lose at 17% (rate on cc)

How many years are you refinancing the house to? It seems like you will be paying the cc debt for at least as long as you would otherwise

[anna7602]

Mar 31, 2015 13:02:43 GMT -5 @hannymaren said:

Mar 31, 2015 11:31:54 GMT -5 iheartbanjos said:

I have bought houses in 3 different states in the US. One state required an attorney at closing. We just did the closing there instead of a title company. He explained what we were signing and made sure everything was all set to close. The cost wasn't much. I think $500.

Are you thinking about turning unsecured debt into secured debt? No judgment on the debt, but please realize how dangerous this is. A high interest credit card is not a good reason to put yourself at risk of losing your house.

It would take us 5-8 years to pay off the cc debt and we would be screwed if we have an emergency. The good news is that if we sell due to a bigger emergency, we would definitely get the value for our home. And even of we lose a bit- it's not even close to the oodles of money we lose at 17% (rate on cc)

I don't know sh*t about Canada, but can you get an unsecured debt consolidation loan at a lower rate than 17%. They used to offer these in the US (probably still do, but I no longer work in that industry) and the term was much shorter than a mortgage. Plus, unsecured! If you really want to use your house as collateral, then look into a HELOC (home equity line of credit). Again, not sure if they exist in Canada...

[lys]

Consider your total lifestyle and make cut backs.
Tampa vacation --- really with that much cc debt? My apologies if you paid cash for it - but still, that cash could/should have gone on the cc debt. You can take a quite at home break for very little money.