Popeye_Card wrote:My house's appraised value is likely ~110-120% of what my mortgage is for at this point. So if I refinanced, if the loan is for only 80% of the home's value, would I not have to pay PMI then?
That is exactly what I did a few years ago, I think the appraiser that the mortgage company sent out moonlighted for Tony Soprano's crew, as the appraised value of my house gave me exactly 80% loan and 20% equity (should have been more like 84/16).
I really can't refinance now because with the loss of value, I wouldn't have the 20% and would have to pay PMI, negating the lowered interest rate.
Never re-finance a house that you don't plan to stay in for at least 5 years or you won't get back the cost of the re-finance.
As for the equity lines. No reputable bank will give you a line that is over 95 % of the value of the house. So if you have a loan for 85% now and your your house is worth 10% more than when you bought it, your line can only be for 20% of the current value. And if you have been in the house less than 5 years--many banks won't even consider that you have enough equity to qualify even if the appraised value has risen.
Plus having that line on your credit report, even if you aren't using it--can stop you from getting a car loan or credit card, because the POTENTIAL to be further in debt is there.
