loan question

[Anonymous]

Is it easier to get a HELOC than refinance a mortgage? I will have to wait a little till I can refinance, which would be preferable, while I raise my scores, but I have about 75% equity in my house now and DTI is high. I have to make some capital improvements though, and would rather do it sooner than later, and then roll it all in when I do refi.

[Lel]

With that much equity, it should theoretically be easy to do either, but if your DTI is very high then that could limit the size of the HELOC or the amount of cash you get out in a refinance.

The advantage of a HELOC is that you probably can get one without any closing costs.  However, the interest rate is variable and will eventually begin to rise when economy improves and the Fed starts to tighten monetary policy again.

[Cleanmachine]

Depending on the need for the money, you will be far better off with a HELOC.

I would suggest looking at other alternatives for your need before going for a HELOC.

I would also recommend that you stay away from refinancing your mortgage unless their is an extreme emergency.

[Anonymous]

Thanks for the advice. I actually meant to say that my DTI is LOW, not high. Low debt, high income. My mortgage is very affordable, but at a high interest rate. We had a rough patch that ended last May, and have been current since, but I will need to wait at least till June and maybe 2010 to refi. However, the capital improvements should happen before that. My scores are TU 673 EQ 629 EX 616. The other thing is that my husband has the income, but his scores are a bit lower than mine, and the house is in my name only. Could it still be done?