a home equity??
2007-06-27 05:55:28 · 8 answers · asked by toolate 3 in Business & Finance ➔ Credit
Generally lenders won't do that but if you find a home for a good deal you may have instant equity that you can pull out later to pay off debt. Then again, your house payment would be higher so you must be paying huge amounts of interest on past debts that you need cleared. You will need to weigh which is better, to pay off the debts as they are, or pay a higher mortgage.
2007-06-27 06:11:45 · answer #1 · answered by B . 2 · 0⤊ 0⤋
You can "ask" for any amount you want.
How do you "pay off debt" by getting a higher mortgage? All you're doing is moving your debt from one lender(say a credit card company) to another (your mortgage lender).
If the interest rate on your mortgage is much lower than your credit card debt (which it probably is) you will benefit by consolidating your debt on the mortgage. But if you clean up,your credit card debt and resume your spending, you'll end up with a higher mortgage payment and the same credit card problem.
Don't forget: Most credit card debt is unsecured. Your mortgage is, be definition, secured -- by your house. If you default on your credit card payments you may get sued. If you default on your mortgage payment you WILL lose your house.
Here's some good advice (and it's free!): Hold off on buying that house and pay off your other debt. The real estate market is in the tank, so prices may go down in the next year. If they do, you'll get a "discount" on your house. If not, you'll benefit by eliminating the interest you're paying on your credit card debt.
Here's some more good (and free) advice: Don't charge anything you can't sell for more than you owe. Vacations, dinners at fine restaurants, etc., are gone. If you buy (and charge) a car or even a television set you have something to sell if you get into a jam. If you can't afford to pay for your vacation and have to charge it, you can't afford it.
Makes sense, doesn't it?
2007-06-27 13:55:14 · answer #2 · answered by SCOTT M 7 · 0⤊ 0⤋
It depends on your credit rating and the lending criteria of the bank. It is possible to buy a house with as little as 5% down (of course depending on how much you can borrow and what type of home it is), but you should weigh the options because you may have to pay mortgage insurance (PMI) or take out a second, higher rate mortgage. Taking out a higher amount on the home will effect your rates, so your choice should depend on whether the all-in rate is lower than the rate you're paying on your current debt.
Also, important to remember that your current debt is consumer debt - credit cards, auto loans, etc. If you don't repay these debts on time, you pay additional fees and interest, BUT if you take out a large amount against your home and can't repay it for a certain period of time, the bank can foreclose your home. The home debt may be "cheaper" but there are lots of other factors to consider.
Talk to a debt refinancing specialist to decide if this is right for you.
2007-06-27 13:07:25 · answer #3 · answered by PK 5 · 0⤊ 0⤋
I have heard of that in very unusual cirucmtstances people have worked things out to do that. But its very rare and hard for most people. The bank is taking on a huge amount of risk if they loan you more then the property is worth.
99% chance you will have to wait a few years and do a home equity. You could always take a seperate loan out with the bank to consolidate debt though.
2007-06-27 12:59:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Sometimes you can make a deal with the seller, who asks a higher price (and you get a higher mortgage) and then the seller pays you the difference. This is usually done if the house needs work...you get a holdback, or allowance, for new rugs, paint whatever. Maybe this can be arranged.
2007-06-27 13:05:23 · answer #5 · answered by Gypsy Doctor 4 · 0⤊ 1⤋
discuss it with a morgage firm. it may be permitted by some, and denied by others. usually, when you have debt, they may require you pay some part off before granting you a mortgage so increasing a loan to do so isn't in their best interest.
2007-06-27 13:00:48 · answer #6 · answered by de bossy one 6 · 0⤊ 0⤋
BEST thing to do is ask the seller to increase the selling price and give you the extra. since the market is very slow right now and they are probable happy as punch to be getting their house sold they will probably do almost anything to make you happy...
2007-06-27 13:08:15 · answer #7 · answered by koolkeynan 2 · 0⤊ 0⤋
just live at your aparment untill you can fully buy the house only have a like 25000 u cant buy
2007-06-27 13:03:37 · answer #8 · answered by lillain 2 · 0⤊ 1⤋