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?Mortgage Refi/Is it ok to take out more for plastic surgery?

By the end of 2008 I must refinance my home, d/t my divorce, I will owe $43,000. I want to have some plastic surgery done and am interested in borrowing enough to cover the surgery, approx 15000-20000. A 30 y fixed rate loan would still keep my payment below what I pay now. But is this a smart decision? Would I be better off borrowing just the $43000, then borrowing against the home to finance the plastic surgery? Or are there other options I should explore? Thank you.

Public Comments

1. A debt is a debt regardless. However, with your mortgage it is considered a debt with a tax benefit. If you were to refinance your home and pull out the equity. I would continue making the same payment even though it's lower than what you are paying now. Make a mortgage payment to the lender. Then send in another check, with a letter for them to apply it towards the principal of the mortgage. That way you are accelerating your payments, and will have it paid off sooner than 30 years. Plastic surgery might seem like a wierd use of equity. But, if you don't feel good about yourself, it could cause more mental and emotional concerns. Financial debt can be cured within a short time. But mental, physical or emotional issues, could take a lifetime. Just my two cents.
2. Mortgage or HELOC can be cheaper option. Any other types of loans will usually have a higher percentage. So the equity on your home will be more valuable in getting lower interest rate because you have something to back the loan.
3. There are several ways to think about this. 1) If you finance it in the home loan, you are paying 30 years for your surgery! 2) The mortgage interest deduction is nice. If you borrow with a traditional loan you won't have that. 3) Are you going to borrow against the home if you don't roll it in the refinance? If so, you may have to pay closing costs, title and all that a second time. It may be best to just put it in the refinance to keep your fees down. I recently faced this decision when I did a refinance. I chose a second mortgage. Yes, I had to pay double the fees, but I used a credit union and it wasn't much. The reason I did it? I did not want to pay 30 years for the money I borrowed against the house. Since it is in a separate loan that I know the balance of, I am working hard to put extra money to it.