How to Refinance Your Home Without Paying The Closing Cost “Two months ago I lost my job; I have since been late on my credit cards; most of them are maxed out; and I am two months late on my mortgage payments. I had a chance to refinance early on, but the rates were very high so I turned them down; now I can’t refinance at any rate. A friend of mine has offered to lend me the $30,000 I need on a second mortgage at 15 percent, plus I must pay all the fees, and I must repay him in full after three months. To repay him, I would have to refinance at that time. Should I?”

There is no possibility that you will be able to refinance in three months. Your equity will be reduced by the second mortgage and your credit won’t be significantly different, even if you have paid off all your overdue credit cards. The process of rebuilding your credit will take years, not months. Your best option now is to sell the house ASAP and retrieve as much as possible of the equity you have in it.

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