I want to buy a house. Will a lender add the balance of my car loan to the mortgage so that payment is gone?

Answer 1

It's possible. Depends on how much you put down, the lender, and many other factors. Get a loan broker so that he/she can shop all the different lenders for you. (NOT LENDING TREE--get a local broker)

Answer 2

I would say that's unlikely. The term "Mortgage" is technically a loan against "Real Property". A car is personal property. In the end, banks are conservative and want to be able to get paid-out immediately upon default. Accordingly they feel the risk associated with Real Estate is reasonable since appreciation of the property has historically been the case. Fair market value for personal property rarely appreciates unless it is a rare or unique item. Cars are not likely to fall into this category and so your mortgage will not (and quite frankly) should not encompass your car loan.

Now, with all that being said, if you have the equity in your home, an option to consolidate your debt, which is ultimately what your goal is here, is to obtain a line of credit against the equity in your home. Here are some assumptions.

1. FMV of House = 200,000
2. Liability you owe on house (i.e. mortgage amount) 120,000
3. Outstanding balance on your car - 10,000.

In theory, you could obtain a mortage for 120,000 which would leave you with 80,000 equity. A bank will likily give you a Line of credit for up to 80% to 100% of the FMV of your home. In this case, that amount is $160,000 to $200,000. Since your original balance on your mortgage is $120,000 and you need an additional $10,000 and your bank is willing to give you up to $160,000 for your house, then take a cash advance of $10,000 to pay-off your liability for your car.

In the end, you may have two separate payments which I know was the original focus of your question. However, your bank may then be willing to consolidate your LOC with your Mortage and give you one streamlined payment.

Hope that helps! and Good luck

Answer 3

well after u have the house for a couple years you can do a combo loan...which is like all your loans into one payment. From what I understand your house would need to appraise for the amount of all the loans in the combo loan. Until then I think you would have to pay car payment seperate from the house.

Answer 4

Just pay off the car loan. Your interest rate on that is probably astronomical anyway.

Then figure out whether you can afford the house with the funds you have remaining for the downpayment.

Good luck in achieving the American Dream.