Mortgage consolidation.?

Question

We have a mortgage for 146,000. Value according to mortage holders is around 205,000. We have a fixed 6.65% rate and have 26 yrs left on mortgage. Current holder could roll all of our debt into home loan and reduce our rate by .25%. Bringing our payment with escrow, insurance, taxes, etc.. from 1460.00 to 1750. Our debt includes 14,000 in student loans, 14000 in credit cards, 15,000 in vechiles as well as 10,000 on HELOC. The question is this almost taps out the entire equity in our home and we would also have a thirty year loan again. Would this be a wise move? Thanks. BTW both of our middle credit scores are mid 720. We make about 110,000 a year.

Answer 1

It's always a bad idea to roll credit card and car loans into your mortgage. I don't think student loans is so wise either. What happens if you have a job change or get sick? Now you lose your house.

Of course, the biggest problem with rolling all this into your mortgage is that you'll be paying every so much more interest over those 30 years for these debts. And of course, so many people charge those cards back up and buy new cars in a couple years.

Answer 2

I would never ever do anything like that. Now you have all that money on your house. If something happens and you cant make the house payment. They are going to take your house.

You make good money. Cut your lifestyle and live on 50,000 for a yr. That leaves 60,000 to Pay off the student loans, credit cards, cars and the Heloc.

Answer 3

Many lenders can assist you if you have bad credit. Now more than ever before, bad credit mortgages are much more common place. One of the first and most important items to come under scrutiny will be your current source of income. Lenders will want to know you can make your mortgage payments on time. Your job security will also be looked at before the lender approves your bad credit home loan. Read more from: http://www.squidoo.com/badcredit-mortgage/

Answer 4

once you say renewal, i assume you recommend adjustment. this may nicely be up or down, reckoning on the words and prerequisites of your note and the position the market is on the time. If I study your put up properly, you're on the hook for $1K more desirable than you may be in case you consolidated. it type of feels to me that you may be wonderful off to consolidate, yet take the money you're saving month-to-month and monetary company it for your self. yet i trust it truly is going to be in a liquid account, not in any form of retirement, so if something takes position, you'll get to it without massive consequences. without observe the bigger loan gained't look so risky. ultimately inspect funding concepts. ascertain you inspect fairness listed regularly happening existence coverage as between the options. I factor out this because I purely in the near previous discovered about it, and favor I knew about it years in the past. If sturctued correct, it is going to develop to an particularly large fee, without incurring taxes, ever, and also you'll be able to have an particularly gentle retirement. This motorcar has a heritage of performance effectively doubling vital each and every 8 years, and provides you massive existence as well as lack of life safe practices for you and your spouse and children. it truly is a exceptionally cool approach.

Answer 5

i would do it if the credit card debts have a higher interest rate.
another thing is that you have to restrict yourself from spending the credit cards again...

make sure the lender isnt charging you more than 1 origination fee...and not try to sneak in some discount points. you should get a 6.25% 30yr fixed...if your loan is above 175

Answer 6

Unsecured debt (car loan, CC) should never be refinanced into a new home loan. You make $110K a year, so you should be able to afford it. You need to be able to keep track of and reduce your spending. If you consolidate, in 5 years you'll be back up to 15K on CCs, and spending like it's no tomorrow. You need to budget your money.