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Answers (6)
- Kerry Cybulski, "kerryrealestate"
- Contributions:143
There has been alot of good advice given to you but there are also mixed resutls. My advice is to contact a financial advisor and take their advice. Good Luck
- HomeSand.net, "White Picture"
- Contributions:4396
I didn't know, how much is your mortgage balance.
Assume your old balance is $100K at 6.5% for 30 years, the monthly payment is $632.
the other debts are $30K at 20% for 60 months, the monthly payment is $795.
You cash out refinancing $130K at 4.5% for 30 years term, the new payment is $659 a month.
If you pay $659 + $795 = $1454 a month in 60 months then $659 a month thereafter, your mortgage life is 184 months (15 and half years)
Assume your old balance is $100K at 6.5% for 30 years, the monthly payment is $632.
the other debts are $30K at 20% for 60 months, the monthly payment is $795.
You cash out refinancing $130K at 4.5% for 30 years term, the new payment is $659 a month.
If you pay $659 + $795 = $1454 a month in 60 months then $659 a month thereafter, your mortgage life is 184 months (15 and half years)
- Dan, "the_country_hick"
- Contributions:4699
Credit card debt is unsecured. They do not have a right to any specific thing you own.
A mortgage is secured debt. They can take your house if you do not pay.
I would NOT do the refinance as it could jeopardize my ownership of my house sometime.
I WOULD talk to a bank (credit union etc.) about refinancing my other debt and getting a lower interest rate. If possible you save money and do not put your house at risk.
A mortgage is secured debt. They can take your house if you do not pay.
I would NOT do the refinance as it could jeopardize my ownership of my house sometime.
I WOULD talk to a bank (credit union etc.) about refinancing my other debt and getting a lower interest rate. If possible you save money and do not put your house at risk.
- HomeSand.net, "White Picture"
- Contributions:4396
You are in better shape if you cash out refinancing, your mortgage life is shorter if you keep pay the old mortgage payment + the credit card payment for the new mortgage, that is to say if your credit card payment is 60 months then keep pay that extra for 60 months into the new mortgage - $90.
I just cash out refinance my home to pay-off the car, and I keep pay same amount of the car payments into the new mortgage.
I just cash out refinance my home to pay-off the car, and I keep pay same amount of the car payments into the new mortgage.
- wetdawgs
- Contributions:26842
"some would say that you are financing your consumer debt over 30 years'.
This is exactly what you are proposing. Many people in the housing run up ended up in serious financial trouble because they refinanced with money out again and again to cover their new cars, their pizza, their trips to Europe etc. Financing a car with a 30 year loan horrifies me. A pizza even more so. How many cars are you going to have during this period? Do you want to still be paying on your car of today when you are two or three (or more) cars removed? Or even medical bills.
The only way I can see doing this scenario to get advantage of the low interest rates is to pay off 20 k consumer loan portion extraordinarily quickly.
This is exactly what you are proposing. Many people in the housing run up ended up in serious financial trouble because they refinanced with money out again and again to cover their new cars, their pizza, their trips to Europe etc. Financing a car with a 30 year loan horrifies me. A pizza even more so. How many cars are you going to have during this period? Do you want to still be paying on your car of today when you are two or three (or more) cars removed? Or even medical bills.
The only way I can see doing this scenario to get advantage of the low interest rates is to pay off 20 k consumer loan portion extraordinarily quickly.
- Robert Spinosa, "RPM Marin"
- Contributions:42
dmccoig82,
It is tough to find a drawback to consolidation scenarios that appear to be this clear cut and offer this kind of benefit (reduce mortgage rate, eliminate high-interest rate debt, etc.). Some would suggest that you're now financing your consumer debt over 30 years and that if you default on it you'll risk your home, etc. However, assuming you can do this refinance and the math makes sense and that you're a responsible borrower, I would, in your shoes, make it happen.
Good luck!
It is tough to find a drawback to consolidation scenarios that appear to be this clear cut and offer this kind of benefit (reduce mortgage rate, eliminate high-interest rate debt, etc.). Some would suggest that you're now financing your consumer debt over 30 years and that if you default on it you'll risk your home, etc. However, assuming you can do this refinance and the math makes sense and that you're a responsible borrower, I would, in your shoes, make it happen.
Good luck!
Should I use my homes equity to consolidate my bills?
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