Home Equity Loans

[Ares]

Anyone here know about Home Equity Loans, maybe give me some advice?

I was thinking about this as an option to pay off a credit card at a more reasonable interest rate.

Good idea? Bad idea? What kind of prep should I do if I want to try and do something like this?

Also, is it bad to try to take out small home equity loans? This would only be like 5-10k.

Impart your wisdom.

 

[Nail Polish]

HEL's are a good idea to pay off CC debt if the interest rate remains low...Those are usually variable rates that can change from month to month..Just be aware

Plus, the interest is usually deductible at tax time..Check with accountant

Another thing...Dont take the loan, pay off the CC, and then run the CC up again...lol

 

[Ares]

HEL's are a good idea to pay off CC debt if the interest rate remains low...Those are usually variable rates that can change from month to month..Just be aware

Plus, the interest is usually deductible at tax time..Check with accountant

Another thing...Dont take the loan, pay off the CC, and then run the CC up again...lol

That last part.... exactly.

Nah I ran it up a bit moving in to my house last year and trying to get used to a way different budget with a Mortgage and Association fees and then utility bills.... admittedly I should have done better with my budget sooner.

Anyways, I got my budget now to a point where I won't be adding to my debt every month and I could just make payments on the CC debt instead of adding to it, but I know the interest rate is insane compared to something like a HEL.

 

[Omeletpants]

As a short term, one time strategy it may make sense. As a long term crutch it will kill you

The idea is to pay off your mortgage asap. Life is better when you dont have that monthly nut to pay year after year. One of the best things I ever did was pay off my mortgage 15 years early. The way to do that is in small, incremental additional payments. Whenever you have some extra money send it in as a principal payment. You will be amazed at how fast your mortgage gets paid off

I know that's not your current question or concern

 

[Monk]

Check closing costs too. That could actually put you in more debt than you were before but just lessen the payment each month due to interest rates. It's a trade off. What ever you are comfortable with. I'm refinancing my upside down mortgage right now with a USDA loan (I have no idea why the USDA is underwriting my home loan) because the interest rate is massively lower.

 

[nvanprooyen]

Check closing costs too. That could actually put you in more debt than you were before but just lessen the payment each month due to interest rates. It's a trade off. What ever you are comfortable with. I'm refinancing my upside down mortgage right now with a USDA loan (I have no idea why the USDA is underwriting my home loan) because the interest rate is massively lower.

That's interesting. Never heard of that. Do you live in a rural area?

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

 

[Monk]

That's interesting. Never heard of that. Do you live in a rural area?

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Yes. That was the original loan underwriter. They are doing streamline mortgages now that don't require appraisal. They do require everything except a semen sample for approval though.l

 

[Ares]

Yes. That was the original loan underwriter. They are doing streamline mortgages now that don't require appraisal. They do require everything except a semen sample for approval though.l

Yeah that was my experience in getting my original mortgage.... for like a month the underwriter kept asking for random shit, bank statements..... 3 different times in 2 weeks I was asked to go to my bank, get my transaction history for the last 3 months printed and stamped and signed by the bank teller.

Finally I got fed up and asked my real estate attorney what was going on, he made a couple phone calls, and the mortgage was approved that day.... idk wtf was happening but when I asked him "Was anything going on you had to deal with?" he just said "Yeah.... don't worry about it". Lol but I guess IDGAF I am just happy I got my mortgage approved.

 

[bearmick]

Check closing costs too. That could actually put you in more debt than you were before but just lessen the payment each month due to interest rates. It's a trade off. What ever you are comfortable with. I'm refinancing my upside down mortgage right now with a USDA loan (I have no idea why the USDA is underwriting my home loan) because the interest rate is massively lower.

Because it's GRH. I'm actually on a project right now looking into the back fees on exactly these types of loans. If your lender sells your loan to be serviced by the company I work for, it's possible I might personally be checking your fees to make sure you weren't exploited.

 

[Ares]

Mick, you got any advice on Home Equity Loans?

 

[bearmick]

Mick, you got any advice on Home Equity Loans?

I think it depends on what you're aiming for. If it's debt consolidation and if you bought your house when rates were higher, you might be able to avoid more fees by just doing a cash out refi on your primary mortgage, which would avoid adding anything to length of your current commitments.

 

[Nail Polish]

Mick, you got any advice on Home Equity Loans?

Shit..I forgot...mick is a loan expert...damn me!

 

[Iwritecode]

A few years ago my wife and I had a ton of CC debt. Then we got something in the mail from Discover about a personal loan. I’ve had a Discover card since I was 18 and it seemed legit so we went ahead and did it.

We got all our CC debt paid off plus a few other nagging bills. It was an unsecured loan but we got it paid off early and haven’t had any trouble since then. I don’t know if this is an option for you but you might check it out. Just google Discover personal loans.

 

[Ares]

I think it depends on what you're aiming for. If it's debt consolidation and if you bought your house when rates were higher, you might be able to avoid more fees by just doing a cash out refi on your primary mortgage, which would avoid adding anything to length of your current commitments.

I bought the house last year in July.... rates were pretty low when I got my mortgage but not having perfect credit I did not get the best rate.

I dont think doing a refinancing is in the cards for me.... cause it would require a down payment I believe and I have like no savings at this point.

 

[Nail Polish]

Ares...Here is your answer...Right under our noses yet!!


[video=youtube;P36x8rTb3jI]http://www.youtube.com/watch?v=P36x8rTb3jI[/video]



ROFL..(hes gonna go postal)

 

[Ares]

:smh:

 

[Scoot26]

Everythings always about Obama and Nukes on this forum.

 

[Ares]

Everythings always about Obama and Nukes on this forum.

And Pigeons....

 

[Run the ball]

Personal opinion here .... I think that's just a band aid(HEL), just make those same payments on your CC and drive it down slowly but surely. I just think since you're a new home owner you'd be be better off building equity rather than using the little you probably have .... My 2 cents and good luck .... CC debt is the worst.

 

[Urblock]

And God. Wrong forum. God is in the other one.