With no money down? This is our first home and we’ve owned it for 4 years and looking to refinance.
Very bad idea. You take unsecured credit card debt and a car loan and put that all into your mortgage and you’ll be paying on it for the next 30 years. Stringing it out means you’ll pay a lot more interest.
Many people do this but turn around and run the credit cards right back up. And of course, you will need to buy a new car long before that mortgage is paid off. Now you have that bigger mortgage and all theother debt. If you can’t keep up, you could lose your home.
If you refinance, do it to lower your interest rate. That will lower your payment and free up cash to throw at that credit card debt.
yes, if you have enough equity in the home and if you do this be sure to get rid of the credit cards and start paying with cash you wil be better off in the long run
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You would have to have enough equity built up to cover the extra loan amount.
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You can in a way if you have enough equity. You can refinance your house and take out the extra cash if you have 20% equity in the home. Otherwise, you could get a first and second mortgage with the second mortgage being a home equity line and take the cash from that to pay down the debt. This will be very hard to do since you just bought the home 4 years ago unless home values have skyrocketed in your area or you had a substantial down payment. However, if you can do it then it is good because the home equity interest becomes tax deductible.
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You can refinance to take money out of your equity (and pay off the other loans), but you can’t literally wrap the three into one new loan.
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Very bad idea. You take unsecured credit card debt and a car loan and put that all into your mortgage and you’ll be paying on it for the next 30 years. Stringing it out means you’ll pay a lot more interest.
Many people do this but turn around and run the credit cards right back up. And of course, you will need to buy a new car long before that mortgage is paid off. Now you have that bigger mortgage and all theother debt. If you can’t keep up, you could lose your home.
If you refinance, do it to lower your interest rate. That will lower your payment and free up cash to throw at that credit card debt.
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No.
Why don’t you sell your car to pay for your credit cards?
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bdancer2 always seems to beat me to the punch but she is 200% right.
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Bill collector 35 years.
In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed, either by changing the loan to a lower interest rate or by extending the period of loan so as to spread out the repayment over a longer period of time. Low refinance rates helps save money which can be used to pay down the principal of the loan, thus further reducing payments.
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