le to get a loan to do this?
2006-10-10 23:01:18 · 14 answers · asked by JUSTENJOYINGLIFE 1 in Business & Finance ➔ Credit
The answer is yes it is possible
the most common reason people do this is to take extra money out for something or to lower the payments over a longer period of time
2006-10-10 23:13:12 · answer #1 · answered by truck_twelve 1 · 0⤊ 0⤋
Hi Justen,
There 's just 2 years left to pay off your mortgage, so why do you want to take another loan? You have paid most of the interest and now it's mostly the payment towards the principal. So, if you don't have any cash problem, you can pay off the entire loan within these 2 years in order to avoid prepayment penalty.
However, if there isn't such penalty involved, then you can pay it off right now. Just go through your mortgage note or other loan document or else you may ask the lender as to whether he will charge any such penalty.
Thanks,
Mortgage Mentor
MortgageFit Community
2006-10-11 00:22:18 · answer #2 · answered by MortgageFit.com 2 · 0⤊ 0⤋
I am so sure anyone would givve you a loan for the small amount you owe on your house. They are loaning you a fraction of what it probally is worth, so no problems there, but you realize that just turns it into anoither mortagage? If your interest rates are high I can see why you do this, also you can borrow more and pay off all tthe debts you have, but then again you are jumping right back into a mortgage that could possibly last longer than 2 more years, but you can get smaller payments...Whatever it is you are needing right now to make you think to do this...
2006-10-10 23:06:08 · answer #3 · answered by ? 4 · 0⤊ 0⤋
If you only have two years left to run I would personally keep the mortgage as this is the cheapest way of borrowing money, getting a loan will charge higher rates of interest and the mortgage company will charge you a fee for paying your mortgage early has they loose out on calculated interest. We enquired about the same thing, and was told that yes it was possible but if ever in the future you wish to obtain another mortgae you have to start from scratch. Stay put if I was you.
Hope this helps
2006-10-10 23:07:31 · answer #4 · answered by jo f 2 · 0⤊ 0⤋
Why would you get a loan to pay off another loan? The closing costs would add on another $5000 to the loan? The first part of an amortized loan is mostly interest....right now you are paying on the principal. Don't refinance the house. You will find yourself in deeper debt.
2006-10-10 23:03:37 · answer #5 · answered by Trollhair 6 · 0⤊ 0⤋
A mortgage is a loan, so getting another loan to pay off a loan...seems odd. What you might be talking about is refinancing, to lower your interest rate.
2006-10-11 02:58:54 · answer #6 · answered by Jason 3 · 0⤊ 0⤋
Depending on the country you are in.
In Australia, if you fall behind in your mortage payments, you can have superranuation savings released to pay on the house.
Otherwise a personal loan from a bank would be easy to obtain if you have an income and a house.
2006-10-11 01:03:53 · answer #7 · answered by rumplestiltskin12357 3 · 0⤊ 0⤋
Yes, but it will be more expensive than keeping the mortgage. You will need to get an unsecured loan from one of the high street or internet based lenders. Some useful web sites:
http://uk.finance.yahoo.com/
http://www.fool.co.uk/
Good luck
2006-10-11 00:05:17 · answer #8 · answered by Sean M 2 · 0⤊ 0⤋
This depends very much on the conditions of your mortgage and your financial circumstances. I would suggest you speak with an Independent Mortgage Adviser. Try the following link....
www.julianmaceandassociates.co.uk
2006-10-10 23:10:17 · answer #9 · answered by Jimmy Mac 1 · 0⤊ 0⤋
check the clauses to make sure there are not any redemption penalties on the interest and what the fee for ending the mortgage is
then you will have to store the deeds to the house either at the bank or solicitors, which there is a fee or buy a fire proof safe to store them at home work or friends
2006-10-10 23:04:50 · answer #10 · answered by RAMSBOTTOM 5 · 0⤊ 0⤋