Which loan to use for a big home repair.

[Anonymous]

Good Evening,

 I just had a structural engineer do a report for me on my home's foundation because the foundation is in rough shape. It ends up being that I have $37,000 in work that has to be done to the foundation of the home, so the home will be safe.  I am needing advice on which home loan to use for this situation. A refinance, or Heloc, or a Home equity loan. I could use some really good advice on this since the cost is very high and I am not rich. lol

[Revelate]

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@Anonymous wrote:

Good Evening,

 I just had a structural engineer do a report for me on my home's foundation because the foundation is in rough shape. It ends up being that I have $37,000 in work that has to be done to the foundation of the home, so the home will be safe.  I am needing advice on which home loan to use for this situation. A refinance, or Heloc, or a Home equity loan. I could use some really good advice on this since the cost is very high and I am not rich. lol

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HELOC is generally the cheapest and easiest and is the way I go with all my crap.

Though speaking of which I'm going to be closing my HELOC as a function of my refi, irritating that I'm going to have to set it up again immediately afterwards but is what it is.  Subordinate financing be darned.

Closing costs on a cash out refi can be non-trivial and a HEL I think might be similar... admittedly I don't know much about second mortgages.

[Anonymous]

Thank you Revelate for the information. I have never applied for a HELOC or Home equity loan. 

[Anonymous]

Heloc and Home Eqity loans tend to be less expensive as far as closing costs and sometimes rates , many local banks have zeros closing costs. 

[NC_Mtg_Loaner]

There are several factors to consider when choosing a mortgage loan product.  For repairs of this nature it may also help to know how much current equity is in your home?   How many years left on current mortgage, it's rate and loan balance?

One really should take into consideration the amount of time they expect to pay the $37,000 back if you were just going to do a HELOC?  

2-3 years?  Heloc is likely to be the best route.

How does this amount "fit" into your current mortgage/home ownership scenario?

With rates at record lows still, there really isn't any harm in financing such a repair and paying for it over the long haul, but that's just my $.02.