Hi,
I don't think it's wise to put your home at risk by consolidating your unsecured debts in a mortgage loan. Think once again and check if you are sure you can afford the payments and don't lose your home in the process.
I don't think it's wise to put your home at risk by consolidating your unsecured debts in a mortgage loan. Think once again and check if you are sure you can afford the payments and don't lose your home in the process.
hi,
it is quite possible to get attracted in consolidating your unsecured debts by including all of them in a mortgage loan as it can give you relief from those high interest rates that you face with these unsecured loans.
but you must analyze the disadvantages too before taking any decision. by including your credit cards and other unsecured debts in a mortgage loan you are converting the unsecured debts into a secured mortgage debt. you can lose your home once you fail to meet the payments.
initially it may seem that you have to make much lower monthly payments but in the long run you will find that you need to make much higher interest rate expenses by taking 30 years to pay down your credit cards.
with poor credit it means higher interest rate on the new mortgage loan and thus you are paying even more in terms of higher total interest expense.
home equity loan can be a better option compared to refinancing where the closing costs are much lower and here you are not increasing your term for the loan and not increasing your rate on the current mortgage.
but this home equity loan also should be taken care as it can put your home at a risk too if you fail with the payments. but home equity loan can certainly be a better option here compared to refinancing.
god bless you.
for mortgagefit,
samantha
it is quite possible to get attracted in consolidating your unsecured debts by including all of them in a mortgage loan as it can give you relief from those high interest rates that you face with these unsecured loans.
but you must analyze the disadvantages too before taking any decision. by including your credit cards and other unsecured debts in a mortgage loan you are converting the unsecured debts into a secured mortgage debt. you can lose your home once you fail to meet the payments.
initially it may seem that you have to make much lower monthly payments but in the long run you will find that you need to make much higher interest rate expenses by taking 30 years to pay down your credit cards.
with poor credit it means higher interest rate on the new mortgage loan and thus you are paying even more in terms of higher total interest expense.
home equity loan can be a better option compared to refinancing where the closing costs are much lower and here you are not increasing your term for the loan and not increasing your rate on the current mortgage.
but this home equity loan also should be taken care as it can put your home at a risk too if you fail with the payments. but home equity loan can certainly be a better option here compared to refinancing.
god bless you.
for mortgagefit,
samantha
i have a chance to refinance. I would rather not put credit cards
in my house loan, but pay them off one by one. And pay my current
loans off as loans not as some giant new loan
in my house loan, but pay them off one by one. And pay my current
loans off as loans not as some giant new loan
Hi Dave,
I agree with you that it is always better not to put the funds of credit cards for the home loan.
I agree with you that it is always better not to put the funds of credit cards for the home loan.
I all I can say is make sure you can afford to do that. If you can't don't even go through with it. It is better to try and payoff what you can.
Making the decision to tackle your debt and put yourself on the path towards financial freedom is no small task. Before making any decisions you should know what your options are.
Debt Settlement - is when a third-party agent works for you to negotiate with your creditors and reduce the amount of debt that you owe. Debt settlement will put you on an aggressive payment plan that will allow you to tackle your debt in 2-5 years rather than taking more than 20 years to pay off growing balances and astronomically high interest rates that you are being charged.
Bankruptcy - might be the right solution for some individuals but can be both a financially and emotionally draining experience. A bankruptcy will remain on your credit for up to 10 years and is typically considered the last option. A bankruptcy attorney will typically require large up-front fees regardless of the outcome of bankruptcy court.
Chapter 7 - is referred to as liquidation. In liquidation, the debtor turns all of their assets over to the trustee who then sells everything and distributes the proceeds to creditors. This can be done once every 7 years.
Chapter 13 - is when the debtor presents a payment plan to the court which is reviewed by the court and your creditors. You must pay a court determined amount based on your income and the plan lasts up to 5 years. The Debtor must remain under court supervision for the life of the plan and is unable to take on new debt or sell assets without permission of the bankruptcy court.
Credit Counseling - is a program in which counselors reorganize your payment plans and give you a longer amortization period for your debt. With credit counseling you will pay back all of your debt plus interest and fees. With credit counseling, your agent is also working on behalf of the creditors and receiving payments from them, which can create a conflict of interest.
Debt Consolidation - involves taking out one loan to pay off multiple existing debts. This is done to achieve one low interest rate across all of your debts. It all sounds great, but finding a loan in this environment can be very difficult, not to mention all of the up-front fees that are built into these loans. In the past, it was common to tap the equity in your home, but given the recent mortgage crisis, this has become close to impossible in most circumstances.
Minimum Monthly Payments - making minimum monthly payments to your creditors is like being caught in the hamster wheel constantly running, but not getting anywhere. It will cost you thousands of dollars and can take up to 40 years to pay back the debt you owe. If you fall behind are unable to make your minimum payment one month or make the payment on time, your credit card company has the option to declare your account in default and raise your interest rate to over 20% in most cases.
Debt Settlement - is when a third-party agent works for you to negotiate with your creditors and reduce the amount of debt that you owe. Debt settlement will put you on an aggressive payment plan that will allow you to tackle your debt in 2-5 years rather than taking more than 20 years to pay off growing balances and astronomically high interest rates that you are being charged.
Bankruptcy - might be the right solution for some individuals but can be both a financially and emotionally draining experience. A bankruptcy will remain on your credit for up to 10 years and is typically considered the last option. A bankruptcy attorney will typically require large up-front fees regardless of the outcome of bankruptcy court.
Chapter 7 - is referred to as liquidation. In liquidation, the debtor turns all of their assets over to the trustee who then sells everything and distributes the proceeds to creditors. This can be done once every 7 years.
Chapter 13 - is when the debtor presents a payment plan to the court which is reviewed by the court and your creditors. You must pay a court determined amount based on your income and the plan lasts up to 5 years. The Debtor must remain under court supervision for the life of the plan and is unable to take on new debt or sell assets without permission of the bankruptcy court.
Credit Counseling - is a program in which counselors reorganize your payment plans and give you a longer amortization period for your debt. With credit counseling you will pay back all of your debt plus interest and fees. With credit counseling, your agent is also working on behalf of the creditors and receiving payments from them, which can create a conflict of interest.
Debt Consolidation - involves taking out one loan to pay off multiple existing debts. This is done to achieve one low interest rate across all of your debts. It all sounds great, but finding a loan in this environment can be very difficult, not to mention all of the up-front fees that are built into these loans. In the past, it was common to tap the equity in your home, but given the recent mortgage crisis, this has become close to impossible in most circumstances.
Minimum Monthly Payments - making minimum monthly payments to your creditors is like being caught in the hamster wheel constantly running, but not getting anywhere. It will cost you thousands of dollars and can take up to 40 years to pay back the debt you owe. If you fall behind are unable to make your minimum payment one month or make the payment on time, your credit card company has the option to declare your account in default and raise your interest rate to over 20% in most cases.
I have a situation. The owner of the house is me and my ex husband. Now, after 9 years of divorce, he wanted to re-mortgage the house I m staying. Just curious, is it possible for him to re-mortgage the house to get some fund and transfer/change the name owner to my my new husband. And for return, he could get his protion by re-mortagege the hosue and my new husband will continue paying the installment ( as he will be the new owner)
Hi emilia,
If you want your new husband to be the owner of the property, then he will have to refinance the loan as well as ask your ex-husband to sign a property deed in his name. Your ex-husband cannot refinance the loan and then transfer the title of the property to someone else. The lender will want the borrower of the mortgage to be the owner of the property.
Thanks
If you want your new husband to be the owner of the property, then he will have to refinance the loan as well as ask your ex-husband to sign a property deed in his name. Your ex-husband cannot refinance the loan and then transfer the title of the property to someone else. The lender will want the borrower of the mortgage to be the owner of the property.
Thanks
this is a strange query. your former husband is to refinance the existing mortgage and, in so doing, transfer his ownership to your current husband....is that it?
what you would need to do is refinance this yourself (and you can add your new husband to title) and give your former husband his money in exchange for a deed to you.
what you would need to do is refinance this yourself (and you can add your new husband to title) and give your former husband his money in exchange for a deed to you.
George is correct. Simple and to the point.
Just wanting to know if we could receive help by using our title to our home,which is paid for,but it is a 1983 Mobile Home,but not on permanent foundation....to get help with consolidating our debts and making everything all in to one payment? :?:
Pamela, you won't get the straight answer you're seeking on here, frankly. What you'll want to do is to present your scenario to a local lender, such as a credit union in your area, or a local bank that you are familiar with. Mobile homes are not treasured as collateral for loans by many institutions, and one as old as a 1983 would be less apt to suit a lender's appetite for collateral.
If your credit standing is in good order and you can afford the payments, using the home as collateral might afford you a bit more consideration; but the two elements at the beginning of this sentence are far more important than your title would be.
If your credit standing is in good order and you can afford the payments, using the home as collateral might afford you a bit more consideration; but the two elements at the beginning of this sentence are far more important than your title would be.
Should I Consolidate my Mortgage 5.99% with my Line of Credit 3.99%?
Rainer, with interest rates closer to that 3.99 you've got on your line of credit now, you'd be smart - methinks - to investigate the possibility of refinancing. Of course, that also depends on how much you owe on each of those loans...I suppose I'd assume you owe more on that 5.99 loan than on the credit line.
I have a 7 yr. ARM that is about to come due in 2011...there is a 1st and a 2nd mortgage for a first home purchase iin 2004. My husband and I both have the same jobs and are able to pay all bills on time but it is tight. The value of the property is still appraised at more than what we paid for it 6 years ago although is has come down in the recent market. I think our interest rate on the 7-ARM is 5.5% for the larger of the two loans and 7% for the 2nd mortgage ($19K).
Since interest rates are already low, do we just let the ARM run out?... or adjust both now into a 30 year mortgage to take advantage of the lower interest rates, assuming we could get the lowest?
We have two small kids in daycare right now and we have unsecured credit card debt we are trying to pay down ($15K)....our budget is maxed out and having to pay less anywhere would be a big help so I'm not able to swing a 15 yr. fixed mortgage although that is what I would prefer.
What happens when the ARM comes due early next year? Does it go month by month or will I have to refinance? Not knowing when the interest rates will go back up, and realizing things are tight now, not sure what to do.
Also, are plan was to have sold the home by now and upsized but the real estate market in our area is not that great so we are just staying in our house for now and I guess for the next 2-3 years I would say before we were in a position to sell.
So should we look into refinance?
Since interest rates are already low, do we just let the ARM run out?... or adjust both now into a 30 year mortgage to take advantage of the lower interest rates, assuming we could get the lowest?
We have two small kids in daycare right now and we have unsecured credit card debt we are trying to pay down ($15K)....our budget is maxed out and having to pay less anywhere would be a big help so I'm not able to swing a 15 yr. fixed mortgage although that is what I would prefer.
What happens when the ARM comes due early next year? Does it go month by month or will I have to refinance? Not knowing when the interest rates will go back up, and realizing things are tight now, not sure what to do.
Also, are plan was to have sold the home by now and upsized but the real estate market in our area is not that great so we are just staying in our house for now and I guess for the next 2-3 years I would say before we were in a position to sell.
So should we look into refinance?