Thanks
2007-08-07 09:32:41 · 16 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
i assume you are talking about a second loan on the house -- your house payment will not go up but you will have 2 loan payments. i would advise against it because you may be paying a lower interest rate but you will be paying for a longer period of time.. also i am not saying you will do it but most of the folks i know who did it -- immediately stated using there charge cards again and they ended up in a world of hurts.
2007-08-07 09:40:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No, your mortgage will stay the same. This is essentially a 2nd mortgage (ie another seperate loan) so you will pay this line of credit with a seperate check. This is a great idea as the line of credit (assuming its on your home) will probably be at a much lower interest rate and is also tax deductible.
Anyhow, you will make one payment for your mortgage each month and a seperate payment for this. Of course if your credit cards are paid off you will no longer be sending them $$$ so overall the amount you pay each month should go down.
2007-08-07 09:37:19 · answer #2 · answered by Slumlord 7 · 0⤊ 0⤋
You will have the same house payment. You will also have a SECOND payment, for the equity line of credit loan. The equity in your house is collateral for this equity line of credit. If you default on that, and don't make your minimum payment every month, you can lose your house just as well as if you default on your first mortgage.
2007-08-07 09:39:07 · answer #3 · answered by kitty kat 2 · 0⤊ 0⤋
Your standard mortgage payment will not increase. Instead, you will have an additional monthly payment on the equity line of credit, and the size of the minimum payment required will be determined by how much you have borrowed against the line of credit.
2007-08-07 09:36:34 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
Your original mortgage will not go up but with the line of equity your payments on the house will, with the additional loan.
2007-08-07 09:39:26 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
you will have two loans, so yes, your total loan payment(s) will go up, but in the long run, the interest you pay on the HELOC (home equity line of credit) will be significantly lower than on your credit cards and its tax deductible, so your total cost over time will be significantly less than slowly paying down your credit card debt.
2007-08-07 09:44:23 · answer #6 · answered by therainbowseeker 4 · 1⤊ 0⤋
Most likely. Also, it will increase the amount of interest you pay in all. It seems like lower interest, but when you consider you will be paying it off for like 30 years, it might cost you more in the long run. Also depends on just how much you have out in credit card bills.
This is a tough question to answer, so many variables.
This site may help you: http://www.suzeorman.com/
Suze Orman is a financial wizard!
Peace be with you!
2007-08-07 09:38:31 · answer #7 · answered by Annamaria 3 · 0⤊ 1⤋
No, an equity loan has nothing to do with your mortgage. But it could affect how much you get on your house if you sell it before you pay the loan off.
2007-08-07 09:36:03 · answer #8 · answered by burghgirl 3 · 0⤊ 0⤋
yes and no.
your first mortgage will remain the same.
you will be using your home as collateral to pay off your credit cards, so you will be paying the separate bill to pay the equity line each month, but you are still using your house as collateral so, if you dont pay it, then, you jeopardize your home.
2007-08-07 09:55:29 · answer #9 · answered by ktlove 4 · 0⤊ 0⤋
You will have a second mortgage (separate payment). Your first mortgage payment will not change.
It is a great idea! In most cases, the interest is tax deductible and the interest rate is lower.
2007-08-07 09:35:57 · answer #10 · answered by ? 4 · 1⤊ 0⤋