I have about $40,000 in equity in my home. I also have about $23,000 in debt (Student loans, car, hospital bills.) My current interest rate is 3.99% on a 30 year mortgage, with 5 years down already. I want to refinance into a 15 year mortgage to save interest and get about $25,000 cash out to pay off the debt. It is shuffling around debt but it will put it all into a lower interest rate, and I will also save a lot on just the mortgage interest alone. Does this seem like a good idea?
Things to consider here:
Are you paying PMI now or will you when you refinance.
Are you putting zero interest debt(hospital bills), along with debt that would be paid off sooner with interest and paying on this debt with interest for the next 15 years?
What does your budget look like overall, employment stability, and what would your new mortgage payment be as a percentage to your income.
Once you answer those questions, then this should help you make an informed decision.
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