Mortgage refinance advise…?
A recent divorce forces the need to refinance my mortgage. I am considering the FHA streamline refinance loan but I am not sure of all the details. I need to know if I can borrow more then I currently owe on my existing mortgage with this program. I have some other debts that need to be paid off with the equity i have built up in the home.
I purchased the home in 2009 for $ 110,000, still owe $ 107,000 (it was a HUD home and I had instant equity after closing).
The home is actually worth about $ 140,000 – $ 145,000, so in theory; I have about $ 33,000 – $ 38,000 in equity.
So my question is this: Can i borrow the full amount of what the house is actually worth or can i only borrow what I currently owe?