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swdynamic

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Mortgage refinance / Use equity to payoff $10K Card collections debt
Business decision to use credit cards for credit line...BAD IDEA! Hind Sight, Have $10K in Closed / Collections CC Debt currently and recently. Have a lot of equity in current home mortgage. Unfortunately my scores (3) are all mid 500's now due to non-payment on card accounts. Used all available funds to keep household and mortgage current and on time. Current interest rate 7.35% with 22 of 30 years paid.

Is it possible to take on Mortgage Refinance and adding the $10K letting equity absorb this extra and hopefully a point or two lower % to try and keep payment(s) on mortgage and only for term of 20-25 years so not to be at original 30 yr term again. Minimum $50K Equity on Current Mortgage.Any answers or advice would be greatly appreciated.

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Mistake in original submission

Sorry, Made mistake in some of the information provided originally. I have paid 8 years on mortgage. 22 of 30 years remaining.

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While taking our some of your home equity to pay off old debt might be a good idea, to be honest, I am not sure there is any way you would be able to do a cash out refinace with your current credit scores in the 500s. I do not think there are any lenders that would be willing to take on that kind of risk, even at a really high interest rate.

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