I called Quick Loans to get some extra cash.I am a home owner with equity and right now my loan with my bank that I have is 5.87 interest 30 year fixed.I have 4,000 debt 2 are high interest credit cards the rest are hospital and doctor bills.My credit score is not that great but have kept payments up on mortgage.I wanted 20,000
cash out for a loan .They offered me 133,800 fixed paying only interest for 10 years.They gave me a 6% fixed rate paying off all debts and the rest of the 20,000 to invest and possibly make a profit.My mortgage payment now is 790.00 a month paying principle and interest .The new pay debt would be 878.00 per month paying interest only for 10 years.They also want a good faith deposit of
500.00 and will go towards the loan.This would make my credit slate clean.Should I do this?
2007-01-14 01:56:39 · 9 answers · asked by eagle 1 in Business & Finance ➔ Credit
It sounds like a good deal, as you're getting screwed everywhere else just now. I would be wary of a firm with a name like Quick Loans though, if it's too good to be true, it usually is..
2007-01-14 02:00:00 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Personally I would consider any interest only loan to be a bad idea. You will pay nothing but interest for 10 years and then you will get a huge increase in payments to pay off the note in the next 20 years. You could then refinance into another loan for 30 more years but you hope interest rates don't go up then.
Interest rates are quite low right now. I would look into a home equity line of credit to use for your debt consolidation. This way, you could keep your existing mortgage with it's very good rate and the interest on the HELOC would be deductible as well.
One other thing, the initial deposit of $500 sounds fishy so I would check with the BBB on that company. If you want to find a reputable mortgage company, look in your local paper's real estate section for mortgage companies that are advertising their rates there. I recently refinanced for a much lower rate with a good company I found that way.
2007-01-14 02:06:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you can afford your current mortgage, and your debt is only $4000, then do not refinance your house, especially with an Interest Only loan.
Set up a tight budget, and pay off the $4000 in debt.
Don't go into debt to pay off debt, or else you will always find yourself in and endless cycle.
2007-01-14 05:43:07 · answer #3 · answered by Robert S 3 · 0⤊ 0⤋
Don't do it!!!!!!!!!!!!! It's a rip-off. Go to a bank or home mortgage for the loans.
With quick loans you end up paying $1000's more than you need to, and the fastest way to lose your house. DON'T DO IT! RUN AWAY FROM THEM RUN RUN RUN..
2007-01-14 02:02:45 · answer #4 · answered by railroad_joe 3 · 0⤊ 0⤋
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2014-09-25 02:57:46 · answer #6 · answered by Greg 2 · 0⤊ 0⤋
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!
R-I-P-O-F-F !!!!!
Just bite the bullet and pay down your debts on your own. You will regret putting your house at risk to pay off a measly 4,000. That is NOT that much! Pay down your lowest payment first which will free you of one payment fast. If you take a higher interest loan, you end up paying thousands of dollars more anyways. AND put your house at risk. No way. Not even metioning CLOSING COSTS, you might as well pay your 4,000 off and stay away from Quicken.
TAKE THE 500.00 "GOOD FAITH" DEPOSIT (WHAT A CROCK!) AND PUT IT TOWARD YOUR DEBT!
2007-01-14 02:02:21 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You are going to borrow money to pay debt?
Do you know why your credit score isn’t so great?
You get a good score by paying your debts, not borrowing more to pay them, not borrowing extra to lose in the stock market so you can borrow more to pay off that debt.
The equity in your home is all you have, don’t use it unless you no other options.
Pay your bills.
2007-01-14 02:19:50 · answer #8 · answered by edoubleyou 4 · 0⤊ 0⤋
never take out a loan for more than need.
2007-01-14 02:06:05 · answer #9 · answered by corey g 2 · 0⤊ 0⤋
You will be paying forever. Just keep making payments on the bills. Pay more than the minimum though.
2007-01-14 02:00:03 · answer #10 · answered by redwidow 5 · 0⤊ 0⤋