Questions about Refinancing or home equity loans?

Question

So, I have read some really negative about refinancing... My husband and I can pay our mortgage we just want to roll our credit cards into one low payment. We ended rolling some our credits cards into one low interest cc last year but not all of them. We are not sure what to really do.. is a home equity better? or do we refinance? does this hurt our credit scores? whats the negative and positive sides?
We don't have more than 10k worth of cc debit, we are just sick of paying different interest rates and want to try to save a little $$$.

I would love to hear your opinions and suggestions. :) thanks!

i forgot to add we have an 80/20 mortgage

Answer 1

Rolling credit card debt into your home mortgage is an absolutely horrid idea!! At first glance it would seem that you are paying a lower interest rate; however, you really end up paying a lot more interest since the amount is stretched out over a very long period of time.

Typically what happens is the credit cards get ran back up and now you have the bigger mortgage and still owe on those credit cards. This is how people lose their homes.

If you really want to get rid of the credit card debt, bite the bullet and pay those cards off. Make yourself a strict budget. Eliminate all the extras -- cell phone, eating out, new clothes, premium cable and internet, etc. Take every penny you can squeeze out of that budget and put it on the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are all paid in full. Then only charge what you can afford to pay in full each month.

You can also look for additional cash to throw at those cards. Have a garage sale, collect alum cans, get a second job.

If you work at it you can probably pay off those credit cards within 2 years. You'll learn some good financial management and will have a nice on time credit history which should improve your credit score.

Answer 2

"What is a Home loan Down payment?
A Home loan down payment is a way of getting extra money from your home, they are similar in some instances to Equity Loans. A home loan Down payment is considered a secure Loan, that allows the person borrowing to access some of the equity or worth that they have in their house. The Key point to getting any type of loan is to check out different types available.

A home Loan Down Payment is not the same as a mortgage, it is an extra or additional loan. A home loan can be an alternative to a remortgage because they are processed quickly and are easier to obtain because the money is taken out against your current home. They also have the added advantage of having better rates of interest and terms than a loan that is unsecured."

You can find more information pertaining the subject of home loans at: http://www.insightempire.com/Homeloandownpayment/

Hope that helps

Answer 3

Pay down the highest interest rate credi card first by adding a bit to the payment, roll that down to the next highest and so on. Refinancing your mtg to roll in 10K to me seems a bit extreme. It "appears" to clear your debt, but going into debt to clear one is NEVER a good idea.

Answer 4

I would try to refinance. I suggest Hometown Banc Corp. My mom used them. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at www.totaldebtsolutionsllc.com and a Hometown loan officer will contact you .

Answer 5

definite it is available reckoning on the fairness place at your place of abode. in case you go over 80% of the loan to correctly worth, then you definately would be required to have PMI. PMI now could desire to be tax deductible reckoning on how lots you're making. you may could desire to make certain whether it is clever to head over 80%. solid success! CA Lender