Posted: Tue Nov 08, 2005 3:54 am Post subject: Want to refinance to pay off my debts
My credit card debts have crossed its limits. I took a mortgage loan last December.I had to pay pre-payment penalties. I have been suggested by one of my well-wisher that I should look to refinance my mortgage and pay off my debts. What do you suggest?
Posted: Tue Nov 08, 2005 4:14 am Post subject: RE:
Hi,
I can understand your problem but according to me this is not a wise decision because if you pay off your debts with a home equity loan then you aren't really paying anything off. If you refinance you will have to pay closing costs and prepayment penalty in which you will loose tons of dollars. Also, if you fail to pay off your equity loan, then you may lose your home.
So I would suggest you that sit and plan your budgets properly and pay off your credit card debts first. Then when the penalties are worn off and if the rates are good it would make sense to refinance.
Posted: Tue Nov 08, 2005 3:51 pm Post subject: jimmy
Refinancing is the right move jimmy, Don't take out a HELOC. Is there equity in the home? Putting the debt onto your mortgage would be a better move. The interest on your mortgage is tax deductible. On your credit cards etc are NOT. Its your choice.
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Patrick Pittius
Mortgage Consultant
We arrange mortgages,not promises.
Edited as per forum guidelines. Made minor changes. Thanks
If you can hold on until your pre-payment penalty time frame is up then I would suggest waiting. But with waiting there is also the risk of rates going up as they currently are. Of course we can't determine what the rates will be like next year, no one can. However, if you can't wait and rather than risk hurting your credit I would say to refinance. Of course it would also depend on how much your home would appraise for as compared to what you owe on it. There are many factors to look at but if you feel that refinancing is the way to go for you then go for it. _________________ Cliff and Sandra
Loan Officers
Conventional & Sub Prime Specialists
Loans done in 50 states
Posted: Wed Nov 09, 2005 8:17 pm Post subject: RE:
Hi Jimmy,
As Samantha and Jerry says, refinancing with a home equity loan may not be a good option, but if you have sufficient income and if you are confident of paying the refinance loan within the time frame, then I see no problem in going for a refinance.
What Cliff says is right. The rates have gone sky-high and nobody knows what it will be in the next few months. I also agree with MoneyLenderP. Taking a home equity line of credit will also not make sense at least in this phase of rising rates. So if you want to refinance your loan, go for it but consider taking some other mortgage instead of a home equity loan or a home equity line of credit.
Posted: Mon Jan 02, 2006 7:01 pm Post subject: Home Equity Loan
Hello,
I own a single wide with 4.98 acres with pently of equity. I was trying to get a home equity loan to roll our debt into one monthly bill and for the tax write off. I currently have a line of credit which I was rolling into the new loan. My credit is very good, I have never been late on any bill and I have been teaching for the past 4 years. My problem is the banks would grant me the loan except they have new policies now and will not give loan for single wide homes any longer. Does anyone know of a lender that does?
Posted: Mon Jan 02, 2006 9:30 pm Post subject: RE:
Hi Alp,
Our community comprises of a group of lenders dealing in a variety of mortgage programs. What I would suggest is that you let us know about your loan requirements so that we can send the details to the Customer Care Department. The officials of this Department can thus coordinate with the lenders offering this kind of loan.
jerry
