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refinacne 2nd mortgage with high ltv

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    refinacne 2nd mortgage with high ltv

    Currently I have a first mortgage wthe 125k left and second mortgage with 35k left and the house is worth 170k. So I have about 10k equity
    The rate for first is 3.5 and the second is 6.5 30 years.

    I also have 18k of credit card debt I've been paying down.
    I am 47 and my kid is going to college in 4 years.
    I do not have any other debt.

    I would like to get my sondond mortgage refinanced with a 15 year loan and possibly add on some of the credit card debt so I can concentrate on college/retirment savngs.

    any ideas of where I should go to try to get this type of refinanacing with a high ltv /

    Thanks

    #2
    What is ltv?
    Kill the debt, before it kills you!

    Comment


      #3
      Originally posted by it99 View Post
      Currently I have a first mortgage wthe 125k left and second mortgage with 35k left and the house is worth 170k. So I have about 10k equity
      The rate for first is 3.5 and the second is 6.5 30 years.

      I also have 18k of credit card debt I've been paying down.
      I am 47 and my kid is going to college in 4 years.
      I do not have any other debt.

      I would like to get my sondond mortgage refinanced with a 15 year loan and possibly add on some of the credit card debt so I can concentrate on college/retirment savngs.

      any ideas of where I should go to try to get this type of refinanacing with a high ltv /

      Thanks

      I don't think by adding more debt solves your problem. You are simply transferring one debt, adding into a new debt via 2nd mortgage. All you've done and created ONE BIG PILE of DEBT. That just EXTEND more years in trying to eliminate the credit bills and your ability to contribute towards retirement and your college education which i don't think you want.

      The main focus should be to ELIMINATE your credit card debt as quickly as possible which is causing enormous burden and anxiety. Once that is paid off you can keep more of what you make. Then you can start adding more towards retirement and cash-flowing your kids college education. But I won't be adding anymore debt. That's crazy! Cut the card off instantly.

      Built a family budget and Pay off your credit card debt as your main priority. Even if you need to stop contributing towards retirement temporarily but at least you put yourself in the situation short term. You did not list your income but put a 6-12 months payoff plan--the sooner the better. In the end, the money that you free up towards paying the credit cards will go a long way towards maximizing your retirement contributions and building some savings and or emergency funds.

      My 2 cents.
      Last edited by tripods68; 05-30-2015, 08:56 AM.
      Got debt?
      www.mo-moneyman.com

      Comment


        #4
        Originally posted by it99 View Post
        Currently I have a first mortgage wthe 125k left and second mortgage with 35k left and the house is worth 170k. So I have about 10k equity
        The rate for first is 3.5 and the second is 6.5 30 years.

        I also have 18k of credit card debt I've been paying down.
        I am 47 and my kid is going to college in 4 years.
        I do not have any other debt.

        I would like to get my sondond mortgage refinanced with a 15 year loan and possibly add on some of the credit card debt so I can concentrate on college/retirment savngs.

        any ideas of where I should go to try to get this type of refinanacing with a high ltv /

        Thanks
        You're going to have to go to a subprime lender since you don't have sufficient equity. (The best rates require an 80% or even 70% LTV, you're at 95% already, without borrowing more). You'll pay a lot of fees and get a high rate with a subprime lender, likely much higher than you have right now.

        Rather than shuffle the debt around, focus on eliminating debt. Do you have a written budget? How did you get into this debt? Was it over-spending, or was it unexpected job loss or medical bills? What rates are you paying on your credit card debt? Is it one card with a balance or multiple?

        Encourage your son/daughter to do well in school and apply for scholarships.

        Comment


          #5
          Originally posted by Randomsaver View Post
          What is ltv?
          Loan to value.

          Comment


            #6
            Originally posted by it99 View Post
            I would like to get my sondond mortgage refinanced with a 15 year loan and possibly add on some of the credit card debt so I can concentrate on college/retirment savngs.
            This statement scares me! It is like you are saying "I want to set my credit card debt off to the side somewhere else so I do not have to worry about it." Debt does not work like that!

            By consolidating your credit card debt onto a second mortgage, you increase your risk significantly. If for some reason you are unable to pay on a credit card, the credit card company will have to kick and scream for a little while. If you do this with a second mortgage, you lose your house! I think I would rather the credit card company cry for a little while; I would not want to risk losing a houe over this!

            What scares me as well is that you have $18,000 in credit card debt! That is above the national average and tells me that you may be living out of control with your money. With all due respect, you need to get on a balanced budget before you do anything else. You also need to figure out what happened that caused you to rack up such a serious amount of credit card debt, cuz man $18,000 does not happen overnight!

            Do you have an emergency fund? Money in savings that could cover you in the event of an emergency?

            First, get on a balanced budget! There is no reason not to do this. Trust me, it will help you gain some traction.

            Second, make sure you have $1,000 to $3,000 set aside as small emergency fund.

            After that, continue making the minimum payments on your mortgages and use any extra money to attack the credit card debt until it is gone.

            It is great that you are thinking about retirement and college savings, however you have to (at the very least) elimate this credit card debt first.

            Originally posted by it99 View Post
            any ideas of where I should go to try to get this type of refinanacing with a high ltv
            I love you idea of refinancing to a 15 year. That is awesome! However, your LTV is way too high and you will be considered subprime on that basis alone. This means higher interest rates.

            Do NOT consolidate your credit card debt onto a second mortgage. This will blow your LTV out of the park and will put you in the danger zone. The last thing you want is to be underwater, only for the second mortgage carrier to call your note on annual qualification (which can happen)!
            Check out my new website at www.payczech.com !

            Comment

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