refinancing vs 2nd mortgage

[Pumpkin729]

Can someone please tell me what's the advantages and disadvantages of refinancing vs 2nd mortgage?

Right now we have a government fixed loan at 6.5 %. There's not much equity in the house I'd say about 27,000. Was wondering if it was better to refinance or get 2nd mortgage to pay off BK 13. We still have 37 of a 63 month plan to go. We've made 26 payments already. Yes, I know, we will wait until the 36 payment before we even think of going ahead with a pay off.

What you guys think?

[aa06a47]

Can someone please tell me what's the advantages and disadvantages of refinancing vs 2nd mortgage?

Right now we have a government fixed loan at 6.5 %. There's not much equity in the house I'd say about 27,000. Was wondering if it was better to refinance or get 2nd mortgage to pay off BK 13. We still have 37 of a 63 month plan to go. We've made 26 payments already. Yes, I know, we will wait until the 36 payment before we even think of going ahead with a pay off.

What you guys think?

I have bounced around with this, but have come to the conclusion that as soon as I can get out of BK, I will. I personally would refinance if you can mainly because the 2nd mortgages usually carry a much higher interest rate. What you have to look at though is if you can get a 1st mortgage without PMI insurance. The tax deductible interest may be a better bargain than PMI.

Also, read the thread where you talked about your 63 month payment plan.

[TTBD]

If you do refinance, will you have to get permission from the courts to refinance your home?

[lrprn]

If you do refinance, will you have to get permission from the courts to refinance your home?

Yes, if you are still in bankruptcy, the trustee has to approve any financial dealings involving your assets.