"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?" No! The only thing this deal can do for you is delay the inevitable for a few months, at the cost of a substantial amount of your remaining equity. I assume you have equity in the house because your so-called friend knows that you won't be able to repay him in three months. The only ...
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