My husband and I just purchased our first home. It was a forclosure and we were able to get a good deal and purchase it with an appraised value of $50,000 more than we paid. We have fairly poor credit (the scores are super low, but we only have a few late pays from over a year ago) and are eager to get it cleaned up and stop paying amazingly high interest rates. We have already closed all but 2 open credit lines (the ones we’ve had the longest and have the best rates) and my question is two-fold, how soon after buying the home can we pull out the equity and is it a good idea? We both have stable jobs and make almost $100,000 a year. We are in this house to stay and would really like to make sure our next moves are smart ones.
Thanks!
My husband and I just purchased our first home. It was a forclosure and we were able to get a good deal and purchase it with an appraised value of $50,000 more than we paid. We have fairly poor credit (the scores are super low, but we only have a few late pays from over a year ago) and are eager to get it cleaned up and stop paying amazingly high interest rates. We have already closed all but 2 open credit lines (the ones we’ve had the longest and have the best rates) and my question is two-fold, how soon after buying the home can we pull out the equity and is it a good idea? We both have stable jobs and make almost $100,000 a year. We are in this house to stay and would really like to make sure our next moves are smart ones.
Thanks!
Try to answer the question without being rude and thinking you know anything about my family from reading a paragraph question about home equity.
robert w
March 9, 2010 at 3:30 pm
good idea NO.
pull out equity in most cases – one year.
visit dave ramsey.com u got some hard lessons to learn hopefully from others bigger mistakes.
u gross 100K?
live on 40K and pay off ur bills is best smartest way.
pay for anything on cash flow.
do not succumb to ‘empty house syndrome’
until ur have no bills and cash.