I am trying to refinance my home and I will be paying off some debt the interest rate is 7% is this ok?

Question

I'm not sure I can afford the higher payment

Answer 1

Very dangerous to include non- house debt in a refi .
Although a small % of people pay it off And do NOT incur any more debt ,
Many people run up other debt Again !
But now their home is in danger because of the added other debt .
Usually , one should never put your home / shelter in that risky slot unless you need the $$$$$ for a life saving operation and do not have health insurance .

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Answer 2

7% is good rate if it is a fixed rate, with no pre-payment penaltys. If you are unsure about being able to make the payments then dont do it, you will be putting yourself in risky situation. If you are trying to just get rid of the credit card debt contact a credit counseling agency like Greenpath Debt Solutions to help get those credit cards in order. They are non-profit debt solutions organization. If you do decide to use credit counseling agency other than Greenpath - please do some research on the company first. Some companies charge a lot money for their services then you could have just as easliy used that money to pay off some of your debt. Again if you think you wonr be able to afford the new housing payment-DONT DO IT.

Answer 3

If you are unsure about the payment then do not go through with it. Do not jeopardize your home with credit card debt. If you can not afford th payments then you loose the home. If you can not afford the credit card debt at least they will not take your home.

Answer 4

Interest rates are down to 6.128%. You might want to see if you can get a lower rate. Even if you can hit 6.5%. Be careful of adding other debt to your house. Make sure you do not replace that debt once you roll it into your house.

Take care,
Troy

Answer 5

7 is ok if its a fixed rate