Easy Home Equity Loan

I don’t want to pay for Private Mortgage Insurance. I want to buy about a 0,000 townhouse but it is hard to save up ,000 for a down payment to avoid PMI.

What options do I have?

- I am a 1st time buyer with good credit.
- I have a good stable job.
- I don’t want room-mates to "help me out" with the mortgage.
- I don’t want to borrow from my 401K which only has a balance of like 00 anyway.
- I have a significant amount of college loans and a car loan, and would be living "paycheck per paycheck" if it weren’t for my wonderful wife.
- I don’t want to settle for high interest rates.

Basically, I’m trying to figure out a way to save 50,000 bucks. My coworkers got their downpayments from the equity on their old homes – (lucky as hell).

It just seems RIDICULOUSLY hard for a first time buyer these days.
Actually, they paid 0% downpayment… It seems you can’t do that these days.

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My husband wants to get out of his car loan. We have tons of negative equity in this car because we rolled over negative equity from the car before this one. Our payment is thus very high. Our finance company (Wells Fargo) won’t work with us to lower our interest rate, thus lowering our whopper monthly payment. Mind you, my husband’s hours have been cut due to the economy and we are struggling to keep our payments current on our mortgage which is more important. Here’s where we disagree: my husband wants to have the car voluntarily repo’ed (I am the co-signer). Our credit already pretty much sucks, but we are really going to need to refinance our house in about a year or so because our temporary modification will run out then and our monthly payments will go up about 0/month. My thoughts are that we really need to try and up our credit scores this year so we can refinance and I think a repo will make our credit even worse. My hubby is listening to people at work who are saying that it will only make a small dent in our scores and that we can pay back the deficiency balance after the repo (which will be probably about K) little by little. I say that they will take us to court, put a lien on our home, sue us, etc. My husband is using the defense that he wants to go and get another car using one of those programs where if you get laid off they will pay your car note for up to a year (he may get laid off too). And he wants to get a cheaper car, which is fine. But I really think its a bad idea to have a car repo’ed because it will hurt our scores a lot and leave us with a huge sum of money to pay back. What are your thoughts???? EXPERT advice would be helpful too…

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Which word describes what you exchange for money when you negotiate a secured debt with a lender?

       collateral
       credit report
       principal
       interest

Which word describes the decrease in value of an asset over time?

       financing
       equity
       leasing
       depreciation

. What will a bank do if you default on a car loan?

       foreclose on the car
       refinance the car
       repossess the car
       depreciate the car

Why do lenders often charge more interest for a car loan than a home loan?

       because you could crash the car
       the car could be stolen during the loan
       cars can be moved to from one location to another
       all of the above

 What can a bank do if your credit score goes down significantly and you miss a car or home loan payment?

       foreclose on your home
       require the car loan to be paid-in-full
       increase interest rates
       all of the above

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Instead of taking a car loan, use the equity from my place to it. If I were to get a car, I would get it financed. So to me, it seems smart just to cash some equity out with the added benefit of deducting interest for tax returns.

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1. Which type of debt is the least attractive for a consumer? (1 point)
unsecured debt
secured debt
mortgage debt
lease debt
2. Secured debt means a lender gives you money in exchange for what?
(1 point)
collateral
credit report
principal
interest
3. When an asset, such as a car, decreases in value over time what is it called? (1 point)
financing
equity
leasing
depreciation
4. When you lease a car, you build equity while making monthly payments. (1 point)
True
False
5. If the bank decides you’ve defaulted on a car loan, what will they do? (1 point)
foreclose on the car
refinance the car
repossess the car
depreciate the car
6. Why do lenders often charge more interest for a car loan than a home loan? (1 point)
because you could crash the car
the car could be stolen during the loan
cars can be moved to annother location
all of the above
7. Secured debt allows you to refinance the loan to get money (equity) out in the event of an emergency. (1 point)
True
False
8. Credit cards are considered unsecured debt. (1 point)
True
False
9. If your credit score goes down significantly and you miss a car or home loan payment what could the bank do? (1 point)
foreclose on your home
require the car loan to be paid-in-full
increase interest rates
all of the above
none of the above
10. When you buy an off-lease used car, you can buy the same warranties you would get if you purchased the car new. (1 point)
True
False

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I have approx. 40K between 4 credit cards that I had before I was married. These credit cards are in my name only, not my husband’s. I have always paid my debts on time and have never been late until the past few months. I am now past due 30-60 days and now owe late fees and over the limit fees and can’t even afford the minimum payments any longer. I have been basically sticking my head in the sand about my financial situation for almost 2 years and borrowing from Peter to pay Paul.

My husband and I jointly have a home loan with a balance of 92K and a home equity loan with a balance of 30K. Our home is worth about 120K so we have no equity. We are current and have never been late on our mortgage loans. We live in Indiana.
My husband has a car loan in his name only. It is current and have never been paid late.
My husband has 2 credit cards with a balance of 11K. These are current and have never been paid late.

I now only work part-time making approx. 0-400 gross per month. I am trying to also substitute teach to make more money.
My husband works full-time and this is how we afford to make our mortgage payment, car payments and his credit card payments on time. We are trying our best to make certain his credit stays good.
My husband has a credit score above 680. I believe mine was 640 until the last few months – now I am sure mine is terrible due to my lack of payments.

I am looking for advice. I have tried to negotiate with my credit card companies and offered to send as much as I can until I can find a higher paying job/more hours. However, they are not agreeing to this and won’t stop the fees/high interest rates from accumulating. I almost feel like it is pointless to send anything because my balance just gets higher after sending a payment.

I definitely want to pay my obligations. I have looked into credit counseling but until I have more income, I can’t afford to make the kind of payments that is required. One counselor suggested that I file bankruptcy individually but I don’t know if that is a real option since I am married. My husband’s credit is perfect and I don’t want to risk his credit.

If I can/should file bankruptcy as my only option, can I still pay back my debt – just on my own terms that I can afford?

If I don’t pay my credit cards, what will happen? Can they take my house or affect my husband’s credit? If they sue me, will the court allow me to make payments that I can afford?

I know this is a lot of information and questions. I truly appreciate your help!!! The stress of this is killing me. I am so tired of worrying.
I have twins so it is tearing me apart to have to put them in daycare in order to work full-time until they are a bit older. Plus, by the time I pay for daycare it’s hardly worth it.
Marq suggests ignoring the calls, etc. But won’t the credit card companies sue me and then I’ll even owe more? If they do sue me, can I get my house?

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Home equity loan of 48,000 with variable around 4.75%
OR
Car loan 22,000 fixed at 2.99%?

I am in the 28% tax bracket and didn’t know if the interest write off on equity loan outweighs the low car interest rate.

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I have a ,000 bonus and ,000 in proceeds from a stock purchase plan. What should I do with this ,000?

I have a ,000 student loan at 5% 6 a month
,000 car loan at 0 a month / 9% interest.
I also have a ,000 balance on my home equity line of credit at 15.4%.

I know that’s a really high interest rate, but I am a bit conflicted if I should pay off my car loan to free up that extra 0 a month to pay down the HELOC faster or if I should focus on the HELOC and keep the 0 a month payment going?
The stock plan is not in a 401(k) or IRA. It is out of an after-tax stock purchase plan. The only taxes I have to pay are on the investment gain, which ends up being approximately ,000.

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