What is the difference between refinancing a mortagage and getting a home equity line of credit?

Sunday, 25. July 2010

My home has appreciated significantly, and I’m looking to pay off my current adjustable rate mortgage and get a fixed rate loan at a lower interest rate, as well as extra money to fix it up and pay off my car loan and other bills. Also, do either cover property taxes and insurance, or will I have to pay them out of pocket? I just want to know the basics before going to the bank so I don’t feel confused or overwhelmed. Thanks!


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Car Loan vs. Home Equity Loan?

Wednesday, 7. July 2010

I recenly got approved for a home equity loan. I am purchasing a car. I can get the home equity loan for 6.6% with upfront cost for the loan at 00. (A 30 year loan which I plan to pay back MUCH sooner). I won’t pay enough interest to get a tax benefit so I am wondering, am I better off to pay a higher interest rate and secure a car loan? Not sure how to firure in the 6.6% plus the 00 cost to get the house loan. Any advice would be greatly appreciated. I am borrowing ,000, which is more than I need and most likely will hang onto the excess money and put it back toward the mortgage loan. Before you ask, I borrowed more than I need as most lenders don’t want to mess with a ,000 loan. Thanks!!!


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Is taking a home equity loan to buy new vehicle and pay bills the smart way to go?

Saturday, 19. June 2010

want to buy new vehicle but still owe on present one plus have other loans. My house is paid for would it be a wise choce to do a home equity loan rather than take an nother car loan. I know nothen about homae equity loans


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when you borrow from your home equity line, how does the payment system work versus a typical loan?

Saturday, 19. June 2010

my wonderful parents are lending me money to buy a new car, and they plan on borrowing the money from our home equity line. they said the interest rate is much lower, but my mom wasnt sure if they charged interest every year like a normal car loan or if it was ultimately much cheaper. anyone know? first good answer by sunday gets the ten.


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Get rid of home equity or car loan?

Monday, 7. June 2010

I have a dilemma.

We have a ,000 home equity loan at 7.25% apr, a car loan on a 7 yr old car for 00 at 5.99% apr and 000 in savings at 3-4% interest rate.

We are currently having a baby and have short-term goals of starting a business so we don’t want to get rid of too much cash. We probably will only be in this house for another 3-5 yrs.

Should we pay-off the home equity loan or the car loan or both?
Thanks for your replies.


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Home equity loan interest is tax deductible?

Saturday, 5. June 2010

I have two mortgages – one for primary residence and one for investment property. I know that interest payment on both loans are tax deductible. But if I get a home equity loan against my primary home to pay off my high-interest car loan, the interest on this home equity loan is also tax deductible?


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Would a home equity loan work for me?

Friday, 28. May 2010

Here is my situation:

-owe 00 to citifinancial @ 28.9% interest (student loan & personal loan)— min. payment of 7/mo

–owe 900 to finance company @ 18.99% interest (car loan)– min payment of 8 bi-weekly

–owe 0 to HBC credit card @ 28.9% interest (used for wedding attire and wedding necessities)

–owe 6000 to mortgage company @ prime + 8%- originaly purchase price of house was 3,900

Citifinancial has offered us the following home equity loan terms:

–lowered interest to 18.9%
–pay off car loan & credit card debt
–pay off our existing loan with them
–lowered monthly payments to 7/month (we would pay bi-weekly and about 0 bi-weekly, so paying more then minimum payment)
–00 cash upon signing new loan (which we could REALLY use to buy new appliances for our kitchen- dishwasher is dead, and so is our dryer)

My husband doesn’t think it is a good idea to take our a home equity loan, while I think it is a good idea because of a lower interest rate, paying off other debt, and NOT financing our needed appliances (at an in-store rate of 28% interest, because we don’t have extra cash right now)… what do you think?

We have had our original citi loan for 13 months, and it was originally 500– we have it down to 00 in a year, so we are good at paying it on time, and paying more on it when we can.
I think it is a good idea to take the loan, because it seems it will help our credit, lower our monthly payment (though as I said, we would continue paying more than the minimum)– and the best thing would be that our other loans are more than 18.9% interest- so wouldn’t it make sense to pay only ONE bill (the new citi loan) than a bunch of small ones at higher interest rates??

Help me make sense of this- how can I explain this to my hubby so he sees it the same way I do? HE says he doesn’t want to do it because he wants to pay citi financial off and never deal with them again- he doesn’t see how it can really help us out right now…

ALSO it would prolong our payments to citi for 2 years beyond what we are owing them right now- this new loan would be for 160 payments- 160 months=13 years whereas we owe them for a little under 11 years right now… and our car loan is 4 years ammort.

What makes sense- taking the loan OR paying what we do now on different bills and never getting anywhere?


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