Submitted by DueExpression6619 t3_10lxfkj in personalfinance
Hello, my father recently passed and I inherited his home, I have one sibling and I am required to come up with 30k to pay my sibling their portion of the inheritance/will.
I am unsure the best way to go about this so I am looking for some genuine advice.
I do not have the funds to pay this upfront but I need to pay my sibling within 11 months of now.
The current mortgage is financed as a 15 yr loan @ 2.1% interest, $120,000 remaining balance. MCOL area. Monthly Payments are $1150. Home is worth approx. $530,000
I currently make $70k as a tradesman with poor benefits and work/life balance. I mention this because I would love to attend college and am curious if I can leverage the home into my favor to afford school? In addition, the home needs about 30-40k worth of repairs.
I have looked into two options and I am naive to both so I am looking for genuine guidance.
- Refinance, I hate the idea of this because how the mortgage rates are. It would pain me to lose the 2.1% fixed interest rate. However, this may make sense to obtain a lump sum and move on?
- HELOC, From what I understand its essentially a line of credit on the home that I may use as needed and only pay interest on what I borrow? The rates for HELOCS are intimidating to me as well, but this may be a better option to keep my initial mortgage rate.
There may even be an additional avenue but I am unaware. If I need to post any additional details, please let me know. Thanks in advance for the help
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EDIT
Thank you to everyone who took a moment to comment and provide advice. I learned through some comments that I was missing significant info and for that I apologize. I feel at this point I need to re-evaluate my question and decide if I want to live in the home. I think I jumped the gun on advice but all the same I appreciate all of you awesome reddit folk. Thanks again to everyone