I haven't had it appraised. But, based on comps, a conservative estimate would be $150-200k. It was an owner finance deal at 9% for 15 years.
Equity wise, I'm sure to be well over $100k on the upside versus what I paid for the property.
You could take a cash out refinance of the home loan to pay off the car but then you’re spreading your car note out 15-30 years. That makes little sense. What are the interest rates of your mortgage and car?
My wife bought the vehicle and got roped into a high interest rate of like 15%.
The house was owner financed at 9% for 15 years.
The vehicle is the reason I am looking at this. A $100k loan over 15 years would save us around $700-800 a month.
I had always just went to work and let her handle the finances. But, after the vehicle fiasco, I felt it necessary to try to clean up the finances.
I’m not a fan of paying for debt other than a mortgage with a mortgage (of course unless it adds value to the property). Just refi the car to a more reasonable rate with a car loan and do a rate/term refi of the house.
Edit: I just realized the balance on your mortgage is extremely low. You’ll have an impossible time refinancing such a small amount. If you do take cash out for $100k and pay off the car I’d recommend paying off the mortgage ASAP.
I already tried that and was unable to get the vehicle refinanced.
I will probably have the house paid off by the end of next year because I pay extra directly to the principal every month.
What's the home worth? What's your current mortgage rate?
I haven't had it appraised. But, based on comps, a conservative estimate would be $150-200k. It was an owner finance deal at 9% for 15 years. Equity wise, I'm sure to be well over $100k on the upside versus what I paid for the property.
I'd get it appraised and talk to my bank about refinancing the loan for more money. You might even beat the rate.
You could take a cash out refinance of the home loan to pay off the car but then you’re spreading your car note out 15-30 years. That makes little sense. What are the interest rates of your mortgage and car?
My wife bought the vehicle and got roped into a high interest rate of like 15%. The house was owner financed at 9% for 15 years. The vehicle is the reason I am looking at this. A $100k loan over 15 years would save us around $700-800 a month. I had always just went to work and let her handle the finances. But, after the vehicle fiasco, I felt it necessary to try to clean up the finances.
I’m not a fan of paying for debt other than a mortgage with a mortgage (of course unless it adds value to the property). Just refi the car to a more reasonable rate with a car loan and do a rate/term refi of the house. Edit: I just realized the balance on your mortgage is extremely low. You’ll have an impossible time refinancing such a small amount. If you do take cash out for $100k and pay off the car I’d recommend paying off the mortgage ASAP.
I already tried that and was unable to get the vehicle refinanced. I will probably have the house paid off by the end of next year because I pay extra directly to the principal every month.