What should I research/ask for here?

[Erika]

We closed on our house March 15th. We've made 2 house payments. Our scores have come up a bit and I think we can get out of the outrageous PMI we're paying right now -- $600 out of our $2700 payment is PMI.

Our appraisal value has bone up at least $50K since we signed our purchase contract last year in June. Homes that are smaller, with less rooms, are going for $320,000 and we paid $270,000. We owe $254,000 on the mortgate.

We would like to get some cash for landscaping our backyard, which will include a pool. We're looking at at least $40K to get this done.

So, would we refinance with a cash-out? or Should we take a HELOC? What's the best scenario for us in this situation? We make $140,000/year and have 1 car payment of $600, $185 for student loands and no credit card debt.

WE'd like to do this in September. There is no pre-payment penalty on our mortgage.

Thanks for any experience.

[firstsource]

There are some lenders that will refinance at current market value, after 6 months "title seasoning", but you are limited to how many you can use, and none of them are conforming lenders.

I know that you really want to get started on fixing things up, but if you will just do the bare minimums this summer, with the funds that you have available, you will be able to get a much better interest rate if you will wait a year. At the rate things are going in your area, you could very well have a 75% LTV loan then, and if you wanted to take cash out, just go to 80% LTV.

Charles

[Erika]

Uhhh.... DRATS, Charles! Not the answer I wanted! But it's very sound advice that I would be a damned fool not to follow.

I'm just such a character of instant gratification.... must work on that.