Debt/income ratio too high so wants to do a debt consolidation loand prior to marketing my house and me buying another one but is that something to seriously consider?  I was going to pay off my debts once the house was sold any way...
136345
Depending on the type of loan you need for your new home, you need to have a DTI (debt-to-income ratio) between 45-50% opn average for a purchase. It makes sense to refi your home to ensure you are prequalified to purchase the new home. It is difficult for a mortgage broker to provide you with a preapproval letter (usually required by a Realtor to prove to a seller that you are a ready-willing-able buyer) unless you meet this DTI guideline.  However, ask what your DTI is and ask that to see it on the application. Worst-case-scenario (although unlikely) and if the mortgage broker is unscrupulous and your DTI is fine, they could be trying to get two deals out of one.  It is very common to recommend a refi prior to listing your home for other reasons as well - for example if you find your dream-home and you put in an offer, but your current home hasn't sold, your purchase offer will have to have a 'contingent upon current sale' clause. This could become a heart-breaking 'deal-breaker' if your home doesn't sell before the offer expires. A seller cannot be expected to hold the sale for you, while you are waiting to sell your home. Also, it is good to have the cash from your refi in the bank (or better yet, invested) as 'reserves'. This makes a lender feel more confident in lending you money for a hew home, because the extra cash removes risk by showing you could cover your new mortgage payment if for some reason you were to become unemployed. I hope these three reasons help you become more confident with your broker. I know it is scary for everyone, and the media only makes it more confusing for consumers. I commend your questions!  Keep asking, information is free!
202604
There are a lot of companies out there that do "consolidation" loans that I believe you are thinking about.\n\nThis type of loan often gives you enough to pay off all your smaller debts and can give you some extra money on top.\n\nNormally though they require collateral (IE a house) but a lot of the companies do take people with less than perfect credit history.\n\nStick on your TV and you'll soon find an advert for a company of this type.
97243
I have 5 years experience in mortgage and Real Estate.. you can do whatever you want with your property, remember the longer you hold on to it, the more it appreciates.  When it comes to paying off debt, you need to consider a few things: \n\n1) if you consolidate your debt, you may be able to deduct it on your taxes (consult a tax accountant beforehand).\n\n2) or you can just refinance, get a better rate, and use your savings to pay off your exsisting debt.  Especially with the interest only loans available, they can reduce your mortgage payment considerably.  (you need to consult with a TX licensed mortgage broker for those options). \n\nThe last option is nice because it doesn't eat away at any of your equity.\n\nHope this helps..
469396
That's basically how it works.  You sell a home for a certain amount of money and then you pay off the mortgage, so whatever's left is yours.  Now, that doesn't necessarily mean that paying off a house is the best investment you can make.  Nothing wrong with it, but if you're looking for maximum bang for your buck you may be better off making the monthly payments on your mortgage and investing your extra money elsewhere.  No way to be sure which is the better investment without checking interest rates and comparing.
528787
One thing to remember if/when you pay stuff off (mainly credit cards) is even if you pay a card of so you have $0.00 outstanding that cad will still be looked at as potential debt, so say you have a $5000 limit & you pay off the $1400 you still have the ability to get $5000 more in debt after the home stuff goes through.\nIf you have more than 2 or 3 credit cards consider closing them so it will not be seen as potential debt, if not then pay them off & lower the credit limits to say $1000, Even at 680 it's a pretty good score so even a few months after the home stuff happens yopu can have the limit raised back up again.\nThat may help a bit. Also remember the places that report your  credit only do so about once a month so even if anything does change you may not see any change for 30-60 days.\nOh and dont pay anything late, miss payments etc\n\nIn addition:\nDue to the two silly fools below me I guess I should mention I work for the 2nd largest bank in the world. \nKeeping multiple empty card open is of no help in any way at all. It just show you can get in more debt as soon as you like & that does not look good for credit. As for raising the credit limit well thats just stupid for this persons situation. Not only will you then get more enquiries on you credit report (another bad thing) but it then shows you can get into even more debt.
559950
If you can, find another way to pay off your credit card debt.  Of course, this is assuming that you're not about to go bankrupt or anything.  It sounds like you're not, as you are moving into a new home.  Don't borrow from your retirement, as that will start a bad habit.  It'll make it easier to do again and again, and then you'll be left with no money for retirement.
233339
im not familiar with get a home loan net- make sure they are a responsible lender-sanctioned by your state dept of banking and ins. or something like that--now-to answer your ?--4% fixed for a 15 yr loan is excellent-- make sure there are no loan origination fees, or hidden fees- a 1% origination fee could be common, yet that is 1,000 on a 100K loan--you are 25 now-your home would be free and clear by age 40--very good idea- only if you plan on marriage and a large family with lots of other obligations would a 30 yr mtg have some appeal as the payments would be lower, yet the rate would be higher- the 4% rate is because it is a 15 yr loan !! take the deal and run as long as the company issuing the mortgage is reputable !! i am a retired CPA & CFP ( certified financial planner)
27088
Maybe.\n\nWhat lenders want is assurance that you can pay back the loan as agreed.  So, a lot will depend on\n\n1.  Income Tax filing for the last 3 years\n2.  Pay Check Stubs for the past 3 months\n3.  Longevity of employment\n4.  Debt / Income ratio\n\nYes, the credit report carries weight, for it says something about your debt load, and your payment performance in the past.  But, it's not the only thing that matters.\n\nMy advice is this.  Contact a real estate agent who has contact with many lenders.
312653
if u live in california i can do the work for you. does your friend currently have a second on his house? if he does refinance depending on how much equity over the house you have u can join both loans into one and at the same time add in the $5-10 k you owe(u would get a check or cash if ud like at the signing). if he only has one loan on his house he can open up a second for the total equity you have available. im pretty sure they wont do a $5-10k loan but wat will happen is that u open a second for the total equity available to u and u just use what you need that come with really low interest rate
432590
If you listen to the 2 previous posts it is a little crime called INSURANCE FRAUD punishable by large fines and prision time. You could do what most people would do and try to sell it. If you owe more on it than it is worth keep driving it and paying on it until the value and payoff balance out. As wonderful a thought of being debt free is, you also signed a contract promising to repay the loan. If you renig, you dream of being debt free will continue even when you change your mind and want credit and no one will give it to you.
26534
If you have a mortgage on your home you could possibly roll that high paying interest into your mortgage.  I'm not sure what a good rate is for personal loans, but with mortgages that's outrageous.  At least if you're able to consolidate that debt into your mortgage you can receive a tax deduction.
290229
If you could provide a little additional information, that would help.  What kinds of student loans do you have?  Have they been consolidated? Are you a teacher?\n\nIf the loan is private, there isn't much that you can do to lower your rate -- most private loan rates are variable meaning that they change with the market and, sometimes, with your credit.  \n\nIf your loans are federal I have to ask: Are you sure the rate is 8.5%??  Federal Stafford loan interest rates have been capped at 8.25% for years.  And the only way your rate would be FIXED that high there would be if you had consolidated when rates were at an all-time high (the last time rates were that high was in 1999).  \n\nIf you haven't consolidated yet, consider doing it right away -- it's the easiest and safest way to (1) lower your monthly payments and (2) lock in a low interest rate while still maintaining the protection of the Federal student loan programs (just make sure you apply for a *Federal* Consolidation Loan).  When you consolidate, any eligible, Federal student loans that you have will be lumped into one new loan, your rate will be fixed at today's rate (5.3% if you're consolidating only Stafford loans) and your repayment term will be extended out beyond the standard 10-year repayment term (for a loan of $46,000, you will probably receive 25 years to repay). Extending your repayment term will mean that your monthly payment will be lowered (often significantly).\n\nIf you have consolidated, the only way that you can re-consolidate is if you...\n\n(1) borrow a *new* Federal student loan (probably not a wise decision, financially, as it wouldn't change your overall rate much)\n\n(2) if you "have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to [you]," you can obtain a Direct Consolidation Loan, which is the other type of student loan consolidation that the federal government offers. \n\nThis might be your best option. Just make sure that your current loan is a Federal Consolidation Loan (if it's already a Direct Consolidation Loan, you're out of luck). If it is, check the Dept. of Ed's website to see if you are eligible: http://loanconsolidation.ed.gov/borrower/beligible.shtml . There's no credit check on these loans, so it can't hurt to try!\n\nThere are private companies out there that claim to be able to "reconsolidate" any federal consolidation loan. These companies are SO disreputable that I hesitate to even mention them. DON'T DO IT. They're in business only to make money off of you. Many of them don't even deal in Federal Consolidation Loans, so you could end up with a "reconsolidated" private loan with horrible terms and none of the benefits and security of the Federal student loan that you started with.\n\nFinally, about student loan forgiveness: loan forgiveness is almost always not an option for someone who has consolidated, so you will need to make the choice between Loan Consolidation and Loan Forgiveness.  Before deciding, keep in mind two things: \n(1) interest rates are on the RISE and scheduled to rise to 6.8% in July, so if you want to consolidate, you should do it before July 1\n(2) Forgiveness (a.k.a. "cancellation") of Stafford loans is rare unless you are a teacher in a low-income area.  To see if you qualify for teacher forgiveness, read this site carefully:\nhttp://studentaid.ed.gov/PORTALSWebApp/students/english/teachercancel.jsp?tab=repaying\n\nBy all means, if you qualify, go for it!
1028
I just asked myself this question a couple of months ago. I ran a spread sheet with a side by side comparison of my 6 1/2% 30 year mortgage versus an equal dollar amount invested at 5% for the same term. You would expect to save quite a bit paying off the debt but you actuality save by keeping the mortgage.
582036
I would say that is a resounding 'YES'.  Even if you sale your home soon you can still make a profit considered your home is worth $550K, current outstanding loans total $199K and closing cost of the new loan is $7K which leaves about $344K in equity.\n\nPersonally if I were you, I would refinance a new loan for at least $221K to get at least $15K of equity to deposit in the bank.
186609
We qualify people all the time with the old home "retained as a rental."  You can use market rent for your area to offset the mortgage on the existing home to keep your ratios down.  You are running the risk that you will end up responsible for two mortgage payments if you can't sell your current home quickly enough.  In my area, that's not a problem because the market is hot (that's why no seller will accept a buyer's offer if it's contingent on selling the current residence... there are so many buyers out there that they don't have to.)
88184
What you are talking about is an "unsecured loan" in banker's language.\n\nMy quess is that if you have sufficient debt that you need to consider a consolidation loan, you are very unlikely to find a legitimate lender who will advance you the funds on an unsecured basis.  You notice, I said legitimate.  Loan Sharks would loan you the money, but the rate would be higher than what you pay on your credit cards and the "collectors" might be a little aggressive.
247144
Probably, but you will not get the best interest rate. A big problem will be if you have too much other debt: car loan, credit card bills, etc. This plus the higher interest rate will limit how big a loan you can qualify for. Before you go house hunting, go to a reputable loan officer and find out whether you can get prequalified.\n\nAnother way to go will be to look for a house with owner financing. \n\nI hope that you are taking steps to clean up your credit and to correct whatever mistakes you have made that have hurt your credit rating.