Posted on: 21st Oct, 2007 02:53 am
we've been in our home for 11 years with a 30 year fixed mortgage at 8% interest. presently owe $90k on 1st and owe $30k on second. home is appraised at $275k. would like to consolidate car loan and payoff all debt (credit cards and 2nd mortgage) -- making the "new loan" amount $160k at 7.8% fixed for 30 years. we've paid the original mortgage down to where most is applied to prinicipal and really hate to add another 15 years or more onto a new loan. were quoted $6000 closing costs to be added to new loan. all the calculators i've used indicate this is not a good deal. our credit has suffered a big hit in last two years & spouse is self-employed so our negotiating power is null. if we refinance, all debt will be paid off and merged into the new loan. to refinance or not? any suggestions? thanks!
Have you looked at an equity loan. It is possible to get a fixed rate equity loan and leave the others alone. You are probably too far into your current loans to make a refi on everything beneficial.
Hi Crazy,
Welcome to our community forums.
It seems that you will be able to pay down the first loan till the end and what need to do now is to consolidate your credit cards and the second mortgage. But I have a question here - Is the 90K debt related to the 30 year fixed rate mortgage at 8%?
The closing cost that your new loan requires you to pay seems too high. Did the lender break up all the costs on the items for which you're paying? If not, then request him to do so.
"If we refinance, all debt will be paid off and merged into the new loan. To refinance or not?"
You can refinance into a new loan which can cover your first and second mortgages and if possible the car loan too. But that will be a huge amount; so whether you'll get one is doubtful, though there are plenty of options in the market and variety of terms and conditions are being accepted by lenders.
Alternatively, you can go for debt consolidation of your car loan and credit cards by contacting any debt consolidation company. But prior to that, you can refinance the two mortgages into one single loan. Consolidation further affects your credit, therefore take out the refinance loan prior to it.
Again, your credit will be affected by consolidation, but it will help you to repay the maximum percentage of your credit card debts and car loan. Your credit can still be re-established while you will be paying for the new loan at regular intervals.
I know about a community which offers reliable debt consolidation services - Debtconsolidationcare. You can contact them and get necessary help.
Regards,
Jessica
Welcome to our community forums.
It seems that you will be able to pay down the first loan till the end and what need to do now is to consolidate your credit cards and the second mortgage. But I have a question here - Is the 90K debt related to the 30 year fixed rate mortgage at 8%?
The closing cost that your new loan requires you to pay seems too high. Did the lender break up all the costs on the items for which you're paying? If not, then request him to do so.
"If we refinance, all debt will be paid off and merged into the new loan. To refinance or not?"
You can refinance into a new loan which can cover your first and second mortgages and if possible the car loan too. But that will be a huge amount; so whether you'll get one is doubtful, though there are plenty of options in the market and variety of terms and conditions are being accepted by lenders.
Alternatively, you can go for debt consolidation of your car loan and credit cards by contacting any debt consolidation company. But prior to that, you can refinance the two mortgages into one single loan. Consolidation further affects your credit, therefore take out the refinance loan prior to it.
Again, your credit will be affected by consolidation, but it will help you to repay the maximum percentage of your credit card debts and car loan. Your credit can still be re-established while you will be paying for the new loan at regular intervals.
I know about a community which offers reliable debt consolidation services - Debtconsolidationcare. You can contact them and get necessary help.
Regards,
Jessica
It makes sence but im betting you can get a better deal rate wise did you get a second oppinion from another lender? What are your scores/assets/ what were the major hits to credit? how long your wife been self employed? How much does she show on taxes (adjusted gross income)? How much do you make? Closing costs seem ok depending on what is in there but rate is definately not a conforming one. Get a second quote from a reputable lender. (it looks too much like the loan officer is trying to make bank by undercutting your rate just a bit and taking loads of YSP)
If you qualify for FHA you can get much better loan and to avoid paying for another 30yrs it might be beneficial to go with a 15yr fixed if payments are comfortable.
If you qualify for FHA you can get much better loan and to avoid paying for another 30yrs it might be beneficial to go with a 15yr fixed if payments are comfortable.
Have you looked at an equity loan. It is possible to get a fixed rate equity loan and leave the others alone. You are probably too far into your current loans to make a refi on everything beneficial.
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Mike
http://www.debtconsolidationloans.com/
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Mike
http://www.debtconsolidationloans.com/
