What to do inherited second home w/ mortgage and equity loan?
My father placed his summer house in Cape Cod in my name with a quick claim deed 8 years ago. He took out an equity loan a couple of years ago, and over that time, borrowed $48,000 before he died in January. My husband died unexpectatntly in March, and I think my best plan now is to sell it. It is going on the market in July, as soon as we change old carpet, replace a window, trim, etc. In the event that it doesn't sell in a range that works for me, I will rent it for the year, and try again next spring.
If I have to rent it, I wanted to look into refinancing. Current mortgage is $1363, house was appraised at $409, the principal on the loan is 138,000.
I need to know what to do with the equity loan. It's $120 a month, I have been paying $200 a month to reduce it out of my checking account. My son says I should pay if off out of my savings, that I will get it back when it is sold, b/c I am going to have to pay it off one way or the other. I'm hesitant to take such a large chunk out of savings.
My brothers say if we have to rent it for a while, then to refinance both loans into one. It sounds too simplistic, and can that actually happen so the $48,000 is worked into a refinance, and if I were to sell it later, than I have escaped paying it off?
Thanks in advance,