Posted on: 03rd Dec, 2008 10:19 am
Hello, I have a mortgage worth $175K, payments 1450/mo. @ 6.25%. Home is valued at about $315K. I'm looking to refi, would it be smart to consolidate $20k worth of other debt, where the interest rate is higher on those cards and loan? Or should I just refi at 5.25%?
hi guest!
welcome to forums!
in my opinion, you can refinance the loan at 5.25%. but you should remember that if you are refinancing the loan, you will have to pay the closing costs. for the credit card debts you can look out for a debt consolidation or a debt settlement. a debt settlement will reduce your debts by 40% - 60% of the total amount. in a debt consolidation, the interest rates for paying the credit card debts are reduced.
feel free to ask if you have further queries.
sussane
welcome to forums!
in my opinion, you can refinance the loan at 5.25%. but you should remember that if you are refinancing the loan, you will have to pay the closing costs. for the credit card debts you can look out for a debt consolidation or a debt settlement. a debt settlement will reduce your debts by 40% - 60% of the total amount. in a debt consolidation, the interest rates for paying the credit card debts are reduced.
feel free to ask if you have further queries.
sussane
Thanks for your response! I was told that they could finance the closing costs in with the refi. I was just wondering if it was smart to refi the cc debt and loan.
How does a debt settlement work? doesn't that reflect badly on your credit?
How does a debt settlement work? doesn't that reflect badly on your credit?
Adam, yes debt settlement does reflect negatively on your credit, anyone who tells you differently is not being truthful. If I am reading your question rightit appears you have been offered an option of just refi'ing the mortgage @ 5.25% or paying off debt at an higher rate ? Not sure what you current offer is or your overall situatiion is. I can tell you exactly what the best program is going to bbe and possibly be able to payoff the credit cards and get you a rate lower then the 5.25% you are being offered.
Aaron Denton 513-252-1803 or "jdenton@1stmetro.net"
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Aaron Denton 513-252-1803 or "jdenton@1stmetro.net"
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Hi Adam,
Yes a debt settlement will definitely affect your credit but it will depend upon your loan amount. If the creditor agreed to a settlement amount and your account is settled, it will be reported to the credit bureaus. Although the account will be marked paid, it will be not be marked “paid-as-agreedâ€.
Thanks
Yes a debt settlement will definitely affect your credit but it will depend upon your loan amount. If the creditor agreed to a settlement amount and your account is settled, it will be reported to the credit bureaus. Although the account will be marked paid, it will be not be marked “paid-as-agreedâ€.
Thanks
Have you considered taking advantage of reducing your mortgage term while paying off the revolving debt through the refinance?
I refinanced with 5.125%, took out $23k for by cc debt and loan. My mortgage payment changed by $3, and i'm saving about $450/mo not having the loan payment and cc payment. Thanks for the advice and the useful information!
That was pretty fast, did the appraisal come in where it was suppose to?