Breanne asked:


we have lived in our house for 5 years and have been fixing it up the whole time were looking at putting an addition on but need about 15,000 to do that what would be best a home equity loan, refinance our morgage (currently at 5.25 interest rate) and if we do go with the home equity loan how do we pay that off? does it go through our morgage or a seperate bill is it wise to use the money to also pay off our 2 cars plus the addition? ive also been hearing of an equity line i know nothing about this sort of stuff and dont want to make a decision that we will regret all help is appreciated

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Aricia asked:


I want to buy a used lexus IS250 for 24,000. Great carfax and low mileage (29000). The interest rates on used cars are so high. I also have an option to borrow against my pension (4.9%). The only problem with that is they will only take money from my paycheck during the school year which will likely make my payments too high. Any financial advice will be appreciated. Can a line of credit be fixed? What can I expect to pay in closing for either? A pension loan is free to get.

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kay asked:


I was transferred the family home shortly before my mom passed away. The house has no debt owed on it (but very high prop taxes). It’s in major need of repair (eg crazy plumbing leaks, outdated electrical), but I’m a recent college grad with a fair amount of loan debt & next to no cash to work with.

I’m try to decide between a mortgage b/c the interest rate would be fixed (or at least more stable) or a HELOC because I don’t want to borrow more than the cost of the repairs, but those are difficult to estimate up front.

My plan is to rent the home after the renovations to pay off the loan and other costs of the home, keeping the home as equity, while I live elsewhere.

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Box Beatle asked:


I will try to make this short, it is complicated. We own 2 commerical buildings, and our home. We have been trying to pay down credit cards for 4 years now with Consumer Credit Counselors. Well economy is terrible, lost my job, and have taken a huge pay cut at my new one. We just quit paying on 3 of our 6 cards, so our credit will be bad. We have never missed a mortgage payment of any kind ever. Our adjustable rate home equity just doubled in monthly payment, and we can only see doom. We have a lot of equity in our commercial buildings with an SBA loan, but would not like to touch that now, (with our credit we probably couldn’t). We are going under, and will not declare bankruptcy for many reasons, just can’t. How can we get our cash flow better with bad credit? Can we talk anyone into combining our two mortgages? (our first is fixed with a great rate). We need help fast! What can we do?

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asked:


I have a adjustable rate witch is changing to 3.87% with a 2 point cap yearly and was at 5.37%, is it worth the coast to refinance at a 30 year fixed rate of 4.875% with no points. I have a 30,000 home equity line witch can not be rolled in to the loan (Oboma ) plan. The house is worth about 240,000 and I owe 226,000 plus the 30,000 home line. This is a tough one to make, save $260.00 a month now but who knows 2 yers down the road with things don’t straighten out ,could be at 7.875%

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Paul W asked:


I currently have a 10.5% Home equity loan but would like to get a lower rate. Since there is much less equity in my home today than when I purchased, I would need to pay half the balance to get a HELOC at 5.5% and achieve the necessary LTV of the home. I was thinking about transferring the necessary amount to a low interest (fixed for the life of the balance) credit card. Does anybody see a problem with this?

I have excellent credit and no problems making payments.

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Greg asked:


For example, let’s say you saved your whole life and a couple of years ago used 80,000 dollars of your savings to make a 20% down payment on a home so that you could get a prime 15 year fixed rate loan.

Now let’s say you are being asked to relocate by your employer within the next 12 months, and in the meantime home values have declined by 18% since you purchased your home and will probably decline by another 16% in the coming year.

So if you sell now, almost all of your equity has been lost, but if you sell later you may lose even more equity.

So let’s write-off the 80K to having been in the market for a home at the wrong time.

But what else did you do wrong? Did you get a shady loan? No. Were you planning on moving any time soon? No, but your employer is downsizing due to the crisis, so you move or lose your job. Did you have a payment you could not afford? Again, the answer is no.

Did you invest in high risk derivatives? Nope.

The market doesn’t care about these silly morality plays you hear the pundits offering up for consumption. The good along with the bad will be punished.

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James H asked:


Hi I have a mortgate of around 2 years old and is a 30 year fixed rate at 6.5%. With interest rates being slashed right now and house prices dwindling it would make a lot of sense to be able to refinance the mortgage at a much reduced rate, lower the monthly premium but still pay (ie overpay) the same amount each month to the mortgage company thereby paying of the principle faster and possibly ending up in a few years time with some equity back in the home. If I leave it as is the market is going down as fast as I’m paying off the principle and am therefore no close to actually owning my home. The other alternative to over paying is refinancing at a 15 year fixed rate loan as that seems to be giving me around the same monthly payment as I’m paying out now.
But the question is, with no equity in the house will my current (or even another) mortgage lender even look twice at refinancing (I understand that lenders are reluctant to give out loan to value ratios of higher than 70-80%)
thanks

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CruisesUnlimited asked:


I currently pay 2 different mortage payments with 3rd Federal bank.

I would like to turn the 2 mortgages into one.

I want to turn my home equity variable loan into a LOW fixed rate.

How and where do I go about doing this?
Which companies offer the lowest rate?
How do I find these companies.

Serious replies only please.

Thanks – Curt

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Tim C asked:


I understand that the loan amount must be equal to or less than 80% of the property value, I’m just not sure what type of loan I should be looking for. In addition, I went to a bank and they said the loan will be adjustable, I also asked my mortgage broker friend the same thing and he said that it will be fixed. I definitely want a fixed rate, please help. Thanks.
yes I will def get a fixed rate and yes my parents know about this but I’m the one that needs to do all the research. So according to RJ I should be looking for a traditional mortgage and shopping around to other banks for a fixed rate??

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