Do not do that loan. If you take out a loan higher than your home is valued at, you'll have a very tough time selling it in an emergency.
630 for a Credit score is not too bad, so $10k+ in closing costs is outrageous. If your score were 500-580 I could understand such a large fee, but I can't even imagine what would cost that much for a 630 score.
I would check into getting a second, possibly a HELOC (home equity line of credit) Most HELOCs have variable interest rates, but offer an interest only payment just in case you guys have a difficult month.
If you have any more questions, please ask
