My wife and I have about $7,000 in credit card debt, and about $10,000 available in our home's equity. Would it not be wise for us to do a refinance and take out the equity to pay off the credit card debt?
2007-09-26 15:57:10 · 5 answers · asked by techcents 2 in Business & Finance ➔ Renting & Real Estate
You can do a 2nd mortgage with a fixed rate, and almost no fees (in some cases no fees at all). If you want to actually pay the debt off, the payment will probably be higher since most credit card payments only cover the interest. If you are looking to lower your payments, you may want to look at refinancing the entire mortgage (depending on what the rate is). If you are in the Carolinas, I could help you find the right product (if there is one) for your situation. If not, and you are considering refinancing, make sure that if you are only paying off $7K in debt, you don't pay thousands of dollars in fees to do it. It just doesn't make sense.
If you are in the Carolinas, you can e-mail me at work - sulrich@firstdecisionmtg.com
If you are in a different area, you can e-mail me anyway and I can steer you in the right direction.
Hope this helps!!
2007-09-27 00:23:49 · answer #1 · answered by Shawna Marie 3 · 0⤊ 0⤋
No, it's a very bad idea. You would be stretching out repayment of that $7K over a long term, thus paying a lot more interest. But the worse problem is that people who throw their unsecured debt into their mortgage, end up running those credit cards right back up.
Instead, work on paying off the credit card debt. Make a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Put every penny you can squeeze out of that budget on the highest interest rate card, while making minimum payments on the rest. When the highest interest rate card is paid off, move to the next, till they are all paid off.
If you work at it, you can have it all paid off in 1 or 2 years.
2007-09-26 16:06:54 · answer #2 · answered by bdancer222 7 · 2⤊ 0⤋
purely placed, "do not Refinance". as a replace look for a nil% APR mastercard, with the quantity of time you like, to prepay the non-public loan, whilst ultimate on the 0%. domicile refinancing can in easy terms be achieved thrice, you purely do not understand what the destiny will convey, so so you might not try this if in any respect obtainable. With the mastercard 0% mortgage, you will repay the non-public loan. With the Refinancing, you will pay 30 or extra years, for the comparable volume of money, you will have an more suitable domicile fee for 30 years, and you would be paying a heck-of-a- lot-of interest. permit your place fee stay the place it somewhat is, until the interest fee is going down via, perhaps 2% from what you're actually paying, then evaluate the refinancing. keep in mind it additionally fee funds, which would be extra on your place fee, to do a refinance. good success. --------------------------------------..... i've got desperate to edit my answer, by way of "Justin's Abrasive comments". until now I answer a question i glance on the asker's internet site. This shows me if this might properly be a extreme question or a humorous tale question. based on your final 2 questions, I took you to be a young person, somewhat purely beginning out in domicile possession. I extra desperate you likely financed your place for probably 30 years. Having different expenses which you somewhat prefer to look after, instructed me that your capital replaced into all spoken for, and in case you probably did, do a Refinance, it may not be achieved for below 30 years, by way of fact the hot domicile fee could be too extreme. If i'm incorrect, than i'm sorry, I consistently attempt to furnish, properly concept-out solutions. My answer for the 0% Card mortgage as a replace of Refinancing, replaced into to keep you the Refinancing funds, and interest for as-long-because it may take you to pay lower back the domicile progression mortgage. good success How Ever, you choose for to bypass.
2016-11-06 11:49:20 · answer #3 · answered by ? 4 · 0⤊ 0⤋
i wouldnt do that unless it will not increase your payment substantially & unless you plan to sell in a relatively short amount of time, most people who do that end up right back in the same position. 7k is a small amount of money, just start making higher payments than the minimum
2007-09-26 18:29:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
depends on the rates on the cards...and your current mortgage. if the mortgage rate will be way lower than maybe.
you also have to look at the refinance costs which can be around 2-3%.....a few thousand dollars.
2007-09-26 16:01:23 · answer #5 · answered by Anonymous · 0⤊ 1⤋