we purchased our home a yr and a half ago. We have 30yr ixed at 5.5%, however we have a second loan for $20K that we got for down payment assistance, it is accumulating interest. We have $30K credit cards. Our payment is a bit hefty and we have not missed any payments. Is there any other loans that would work out better for our situation? Our plan is to sell within 5 yrs anyway, but for right now we need it to be a bit affordable. We have gained NO equity and another factor is we are a military family and want the option to rent it out, but with our type of loan we can not.
2007-07-25 11:45:47 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You can't touch a 5.5% fixed rate right now if you searched every state in the country, without paying points out the wazoo.
If you have no equity, then you cannot do a debt consolidation loan.
However, if you are moving in 5 years, my recommendation is to sit tight until you sell. Between closing costs, etc. There is no way you are going to "break even" in 5 years.
I wished you posted how your down payment assistance program worked, but at only $20K, when the bulk of your mortgage is at such a low rate, again, you are in the best situation you can be for now since you are wanting to sell so soon.
2007-07-25 11:53:04 · answer #1 · answered by Expert8675309 7 · 0⤊ 0⤋
You have an extremely attractive fixed rate at 5.5%. If you change to any OTHER type of loan now to stretch out your payments, most of the savings you might gain will be eaten up by correspondingly higher interest rates.
Frankly, you're in about as good a position as you are going to be. Time to bite the bullet and start paying down those debts.
2007-07-25 11:50:01 · answer #2 · answered by acermill 7 · 2⤊ 0⤋