I have been transferring balances and making payments but I would like to know if there are any viable loan options to turn it into one payment without killing my credit score. Any help would be appreciated.
I don't understand how you own a home but say you have no equity–of course you do. Do you still have a mortgage? My hubby got us in this situation years ago, we were actually seperated at the time. When I came back it was to find that he owed money to a bunch of lenders who were charging outrageous interest.
We went to the bank that holds our mortgage and they were more than happy to consolidate all the loans and even asked why we had not come to them first. Good question. The interest at the bank was 10% lower than what my guy had been paying.
Happy to say we are out of debt and the house will be paid for in 3 years, yeah!
I just finished building my house and I have no mortgage or anything as I had enough cash to buy the land and build outright. But, I have no money left to landscape and have some medical bills I would like to pay off. Can I get a home equity loan or line of credit on my house? Which is better?
A mortgage would be your best bet when it comes to a lower interest rate.
Most banks have prepenalty payments on most of the equity type of loans. However the line of credits generally will not.
I want to buy a house and have a good Fico Score. However 75%of my income is spent on Rent, Car, Credit Cards and Student loans.
I wanted to know can I buy a house and possibly get a 2nd mortgage to payoff my credit cards, car and student loan?
Yes you can do this and you have more than one option:
1.No Doc Loans- You can qualify even with your high debt load. There are programs available with no income requirements. These are reffered to as No Ratio or No Doc loans.
This option is the reason why there are so many foreclosures recently. Unfortunately, a lot of people got into homes that they couldn't afford. If you can live on less, and you have discipline, then this may be an option. If you don't, then I would avoid this strategy.
2. 125% Financing- You could also try qualifying for 107-125% financing. This would give you extra cash to qualify to pay off your debts, as well as buy your home.
The catch to these loans is that you will be "upside down" on your property. Which means that you will have to wait until property values are high enough to cover your loan amounts before you can sell or refinance.
3. Below Market Homes- You can find a house that you can buy for less than the market value of the home. This is becoming more common now that prices are softening.
You have to be careful though, because some properties may seem undervalued when they are really just depreciating. The way to be safe is to not consider anything a "deal" unless it is 75% or less than the market. For example, a $100,000 home that you can buy for $95,000 isn't a deal. A $100,000 home for $75,000, on the other hand, is.
You can then refinance the home that you bought and get a second mortgage to pay off your debt.
This is the best way to go but it takes a lot of work to find "deals". The best place is to start with foreclosures. I can go on for hours about foreclosures but that's not what you asked about…
If you or anyone you know needs more help with any of these topics then please email me with your contact information and I will give you a call back the same day.
I'm planning to relocate, but current owe a mortgage for $50k. I also have a bankruptcy on my record thats a couple of years old. I'd like to find new home in the state I choose to live in. Would I be able to get a second mortgage or refinance my current home in order to pay for a new one?
That depends on a few things.
How much equity do you have in your current home?
What is your credit score?
What is your debt load?
Yes you can get a 2nd mortgage on your current home to buy another, people do it all the time.
Your income must support maintaining your current home (you should be able to get a renter in there to offset the mortgage payment or some portion there of) and support your new mortgage.
You can get a loan with a BK. Many lenders require it to be discharged for 2 years, however, there are still a few lenders that will lend on a BK only being discharged 1 day.
In a nutshell, yes you can, if all your other ducks are in a row.
Good luck
I'm not exactly sure what you mean here, but I don't think it's entirely accurate.
A Home Equity Line of Credit(HELOC) is based upon the prime rate(an index) which in turn is based upon the over night Fed Funds rate. The Fed Funds rate adjusts monthly according to the Federal Reserve's meetings (Greenspan in the past).
HELOC's as 2nd mortgages are higher than some 2nd mortgage loans right now because the index that derives their rate(Fed Funds & Prime) is higher than several fixed 2nd mortgage indicies.
Typically, the payment for HELOC's is interest only. To see what your payment is here's a link to a mortgage calulatore on my real estate site: http://www.nnnstore.com/mortgagecalculator.php
The typical loan term is 30 years. To find out what your interest only payment is put in a loan term of 2400 years.
For years though, HELOC's were even less than first mortgages with interest rates as low in the 4's.
2nd mortgages tend to be at a higher interest rate than 1st mortgages, typically. The reason is because in the event of foreclosure there is an order for paying off liens, known as position. 1st mortgages would be paid off fully first because they are in a higher position than a second mortgage.