What is the process to take out the equity in my home? Goods and Bads of doing so...?

Mind you I have only been in the house one month, but, would love to get rid of some monthly bills. Is this a good idea? I also need to mend up a few rough spots in my credit in order to purchase an investment property, andd the only way I can afford the property is if I were to free up those monthly payments with the equity. Any ideas would be great!

Prior to going Active Duty I was in the Banking and Lending Industry for a very long time...

1. Good about Taking Equity (Refinancing) -
Pay off Bills, decrease monthly payment, lower rates, Tax Benefits, extra cash for home repairs to increase the home value.

2. Bad about taking out Equity-
Paying to have an appraiser come out and appraise your home, although some lenders can work that out.

Keep in mind because you have only been in the house for 1 month, most banks and lenders require you to be seasoned for 6 months (live in the home for 6 months) before you refinance.

As far as Investing? If you are paying off debt and free up extra cash flow, I would advise investing in various avenues of real estate...You can only gain in real estate. As long as you do you research and see how the housing market is going in your area; you'll be fine!

I hope this info was useful!
Regards

www.FinanceYourWay.com

For starters........if you can't pay down your debt without getting a home equity loan.......you have no business looking at an investment property. Next point is.....if you can get a better interest rate for your home equity loan vs. your debt I say do it. Not only are you gonna pay less in interest but you can write off the interest from that loan on your taxes. Good luck.

good- you take out a equity loan, and you pay all ur debt.

bad- its like getting another mortgage on ur house, and ull have the same mortgage payments, plus the new equity payments. and it adds to ur debt to income ratio. so u have twice as much debt. and u dont have equity no more.

I suggest you comparison-shop for home equity loans with the below website

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