Replies (6)
- wetdawgs
- Contributions:39568
While not commenting on the initial question, the comment of taking out equity to pay off student loans and credit card debt did catch my eye. A large number of people are now in foreclosure because they've traded unsecured debt (credit cards etc) for secured debt (the house).
Think of what is on your credit card. Do you wish those debts now to be paid over the next 30 years? For many credit card expenses, that would make a very very expensive item
Think of what is on your credit card. Do you wish those debts now to be paid over the next 30 years? For many credit card expenses, that would make a very very expensive item
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:4280
I think it can be done. I would advise you look at a 15 year convetional loan.
- NTETS, "Mr Caveat"
- Contributions:6436
i'm with wetdawgs. if you are bankrupted due to unforseen circumstances, far better to lose your credit score vs your house. the debt isnt secured, which is why the interest rate is so high. you are in a very fortunate position to have a mortgage payment of only what, 300/month? here is my suggestion instead. do everything you can to pay off that home completely. skimp on clothes, food, and put every cent into your house. making 100k/year, even with your student loan debt, you can hopefully take care of the whole thing in a couple of years... i know how insurmountible student loans can feel( trust me) but they are practically the best term loans in the whole wide world, low rates, suspendable... so keep working at it and pay everything down one at a time, but dont make short term debt a long term problem. remember that for every dollar you amoritize over 30 years, you will pay another in interest. in this case, a penny saved really is a penny earned.
if you do ignore me though, if your mom qualifies without your income, let her go it alone with the paperwork, you can be added to the title again later easilly enough.
if you do ignore me though, if your mom qualifies without your income, let her go it alone with the paperwork, you can be added to the title again later easilly enough.
- lesterhahn
- Contributions:2
Thank you for all of your advice.
We were able to qualify for a conventional 15 yr loan and are only waiting for the appraisal on the house to proceed.
I understand that student loan and credit card debt comment stood out, however it is a very small minority of the planned funds. A majority of it is for home repairs and improvements. The repairs needed to the house can not wait. Unfortunately, they are existing issue that we have been putting off for years. I budgeted the payment I could afford with those debts in mind, not expecting them to be paid off. That part would be gravy to help my mother out. She is on a limited income and the bills are hers.
We were able to qualify for a conventional 15 yr loan and are only waiting for the appraisal on the house to proceed.
I understand that student loan and credit card debt comment stood out, however it is a very small minority of the planned funds. A majority of it is for home repairs and improvements. The repairs needed to the house can not wait. Unfortunately, they are existing issue that we have been putting off for years. I budgeted the payment I could afford with those debts in mind, not expecting them to be paid off. That part would be gravy to help my mother out. She is on a limited income and the bills are hers.
- Crystal Kehoss, "modificationduchess"
- Contributions:20
Why would you pay thousands of dollars to refinance only $40,000? Have a loan modification company do this for you, just make sure that they are rated A+ by the BBB and are Accredited. Also, make sure that any up front money is put into a trustee account until your modification is approved. If you try to do it yourself, you will probably be denied because you do not know what your lender wants to hear. Also, people that stand to make money from a refi, hate us modification people because it is costs a fraction of the cost to refi. Let me know if you have any other questions regarding modifications.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:4280
Refinancing inherited property with iffy credit in CT
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