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Guest
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 Posted: Wed Dec 03, 2008 11:19 am Post subject: Should I Refinance? |
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| 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 $20k worth of other debt, where the interest rate is higher on those cards and loan? Or should I just refi at 5.25%? |
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 smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Wed Dec 03, 2008 8:33 pm Post subject: |
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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 |
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1Adam12
Guest
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| Posted: Thu Dec 04, 2008 8:44 am Post subject: |
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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? |
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AaronD
Guest
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| Posted: Thu Dec 04, 2008 4:28 pm Post subject: |
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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"
[Promotional text deleted and link deactivated as per forum rules. Thanks.] |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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| Posted: Fri Dec 05, 2008 2:19 am Post subject: |
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Hi Adam,
Yes a debt settlement will definitely affect your credit but it will depend upon your loan amount. If the creditor agreed to a settlement amount and your account is settled, it will be reported to the credit bureaus. Although the account will be marked paid, it will be not be marked “paid-as-agreed”.
Thanks |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Sat Dec 06, 2008 9:12 am Post subject: |
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| Have you considered taking advantage of reducing your mortgage term while paying off the revolving debt through the refinance? |
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1Adam12
Guest
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| Posted: Mon Dec 08, 2008 8:26 am Post subject: Got it done |
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| 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 $450/mo not having the loan payment and cc payment. Thanks for the advice and the useful information! |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Mon Dec 08, 2008 4:27 pm Post subject: |
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| That was pretty fast, did the appraisal come in where it was suppose to? |
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