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Question for the Money Doctors

Question submitted on Apr 26, 2010.

Question

I owe $108,000 on my home I have 11 years left on a 15 year mortgage w/ 5% interest. My home is valued at about $170,000. I would like to put steel siding on it ($14,000) and pay off my vehicle ($10,000) and credit cards ($12,000). Would it be better to take out a 2nd mortgage or refinance all together?

Answer

 I think the first thing you should do, is find out if you qualify for a new mortgage, and what the rate and amount they would be willing to quote you. Also, you need to make sure that the new "monthly mortagage payment" is something you can afford. Once you compare your new monthly payment..to what you currently pay, that will help you make the right decision..


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