Posted on: 16th May, 2007 03:37 pm
we have an offer of a second mortgage on our home. the part i am not sure about is that they want to lend us the money provided my wifes car is paid off through the loan. the mortgage payments will be about 200.00 less than her present car payment and there will be about 6000.00 left over to pay off some small credit cards and do some minor home improvments. this deal seems kinda iffy to me. also, the mortgage interest rate is lower than both the car loan rate and the credit card rates.
Which type of second mortgage will it be? fixed or..adjustable rate? and for how many years? How long the car loan payments will continue?
If you compare the years you will have to continue making payments on the second mortgage to no. of years left on the car loan, you will be able to figure out if it would be a benefit taking out second to pay off the car loan.
And did they mention anything on why they have placed the requirement that the car loan should be paid off from this second mortgage?
Colin
If you compare the years you will have to continue making payments on the second mortgage to no. of years left on the car loan, you will be able to figure out if it would be a benefit taking out second to pay off the car loan.
And did they mention anything on why they have placed the requirement that the car loan should be paid off from this second mortgage?
Colin
Hi fireghost,
Welcome to forums.
You can use the second mortgage to pay off your car loan and even the credit card debts. I don't find anything iffy here except that the lender is willing to lend you provided you pay for the car loan. But don't think there's anything to worry about it. If you can manage the monthly payments apart from your first loan, then you can go for the second loan.
You may go through our section on Second Mortgage to know more on this topic. And, if you any related query, please feel free to come up with it.
Thanks
Welcome to forums.
You can use the second mortgage to pay off your car loan and even the credit card debts. I don't find anything iffy here except that the lender is willing to lend you provided you pay for the car loan. But don't think there's anything to worry about it. If you can manage the monthly payments apart from your first loan, then you can go for the second loan.
You may go through our section on Second Mortgage to know more on this topic. And, if you any related query, please feel free to come up with it.
Thanks