Posted on: 04th Sep, 2007 10:47 am
Hello Experts,
I just registered with this forum. I need your valuable suggestions on " How to reduce my 2nd trust mortgage payment? "
Let me explain my situation.. I bought a condo in NJ for $290,000 in 2006 for 100% loan(5/1 ARM). My first trust loan is for $232,000 at 7.75% APR and Second trust loan is for $58,000 at 12.25% APR. And I am paying minimum payment on 1st loan and Interest only on 2nd loan.
I am planning to take out some money from credit cards which are at 5% APR and pay for my second trust loan..Is it correct way of reducing my 2nd trust loan payment ?
Thanks in advance,
Chandra.
I just registered with this forum. I need your valuable suggestions on " How to reduce my 2nd trust mortgage payment? "
Let me explain my situation.. I bought a condo in NJ for $290,000 in 2006 for 100% loan(5/1 ARM). My first trust loan is for $232,000 at 7.75% APR and Second trust loan is for $58,000 at 12.25% APR. And I am paying minimum payment on 1st loan and Interest only on 2nd loan.
I am planning to take out some money from credit cards which are at 5% APR and pay for my second trust loan..Is it correct way of reducing my 2nd trust loan payment ?
Thanks in advance,
Chandra.
"I am planning to take out some money from credit cards which are at 5% APR and pay for my second trust loan..Is it correct way of reducing my 2nd trust loan payment ?"
Credit cards have considerably lower rate than what you have on your 2nd mortgage. If you can reduce the balance on the 2nd loan then it would be beneficial for you.
Credit cards have considerably lower rate than what you have on your 2nd mortgage. If you can reduce the balance on the 2nd loan then it would be beneficial for you.
Hi Yveerasekhar,
APR may not be the right factor to judge the interest rate on credit card and second loan.
Moreover when your second loan is an interest only loan, it does not necessarily mean that you have to make payments only towards the interest. You can also pay off a certain amount towards the principal along with the interest on a monthly basis. In this way, if you regularly make payments towards the principal, it will help you to repay your second loan faster.
But you must have sufficient fund to make the payments.
APR may not be the right factor to judge the interest rate on credit card and second loan.
Moreover when your second loan is an interest only loan, it does not necessarily mean that you have to make payments only towards the interest. You can also pay off a certain amount towards the principal along with the interest on a monthly basis. In this way, if you regularly make payments towards the principal, it will help you to repay your second loan faster.
But you must have sufficient fund to make the payments.
Hello Yveerasekhar,
I personally feel that the lender will not allow you to use a credit card for repaying the second trust loan. It will not reduce your payments as the interest rate will be higher. And this will also raise your monthly payment. You should better review your credit card agreement as I doubt if they really charge you 5 % or not. The rate never the same as it was at the time of purchase.
I personally feel that the lender will not allow you to use a credit card for repaying the second trust loan. It will not reduce your payments as the interest rate will be higher. And this will also raise your monthly payment. You should better review your credit card agreement as I doubt if they really charge you 5 % or not. The rate never the same as it was at the time of purchase.
Hi,
It is my personal credit card..and APR for balance transfers is 5% fixed for the life of the loan. I am paying around $600 interest on my second trust loan of $58,000. How much can I get back after year end tax filings..I am in 25% tax bracket..
Thanks..
It is my personal credit card..and APR for balance transfers is 5% fixed for the life of the loan. I am paying around $600 interest on my second trust loan of $58,000. How much can I get back after year end tax filings..I am in 25% tax bracket..
Thanks..
Hi Yveersekhar,
Do you want to know of the total amount of your tax deduction or the amount that you will get as refund? In that case, it is better if you consult with a tax professional as I think he will be the right person to help you.
Do you want to know of the total amount of your tax deduction or the amount that you will get as refund? In that case, it is better if you consult with a tax professional as I think he will be the right person to help you.