Easy Home Equity Loan

We still owe 000 @ 11.25% on our home equity line of credit ! we pay 0 per month.Should we pay this down by 1/2 or should we pay off our truck @ 8.9% bal of ,750? we have no credit card debt as we just payed them off. Recently retired and sadly have no retirement saved up.

Interesting Blogs

My 48 y/o sister has asked me a question and I don’t want to give her bad advice. Here’s her question and her stated financial info:

Should they pay off balance on their 8.25% (prime for life) credit card (with a long and excellent credit history) and put that balance towards their home equity loan? Both have high FICOs.

They currently have a 1st mortgage of 0K fixed at 4.25% until 5/09. They also have a fixed (locked in) rate of 7.65 on their home equity line at a 10-year term with a current balance of K (K avail). Their home is worth between 0-580K. They only have one credit card they use, but it’s K (prime for life) currently 8.25% and she makes at least double the monthly payments in an attempt to pay down. They would like to eliminate the credit card debt if possible to be able to save more and not feel so stretched each month. Plus one teen now needs a car (more outflow).

Banker will lock addt’l draw and combine both for 7.6%. Yearly income K. Advice?
Forgot to mention that mortgage is 75/month, she pays 0 on equity loan (min 5), and she pays 0-1000/month down on the credit card. If CC was eliminated, the banker told her the new lock on the equity loan would make that monthly payment 3, which she could also pay more down on with no penalty. She’s really nervous about fooling with the equity in the home because of their old(er) age. Should she keep things as is and pay down aggressively or transfer to current home equity or other great idea? Thanks again.

Interesting Blogs

I am recently divorced and the reason for my divorce was due to my wife obtaining numerous credit cards on line im my name, she then maxed them out and didn’t make payments on them. When I found out the cards existed the interest rates had went out of sight and late fees had became enormous. Due to the divorce and the credit card debt I turned the credit cards and one personal loan over to Consumer Credit Counseling Service. This is still a strain on my budget. I bring home 3,700 dollars a month and my total debt that I turned over to the credit counselors is now 18,700 dollars. After I pay my rent, child support (which is the mortgage on the house my x wife lives in), car payment, a home equity line payment, and other monthly bills I only have approximately 360 dollars left for groceries and gas, and other emergency expenses. Would I be a good candidate for bankruptcy, or does anyone know a better option?

Interesting Blogs

I have about ,000 in my cash accounts (banking and savings). Some of this money is in a savings account that I would consider my emergency funds. I have a very generous retirement program of about 12% of my salary, which has been established for about the last 6 years. I am 33 years old, with a wife that has a job and a generous retirement plan and 1 baby.

I have some other small mutual funds that I started from savings which are 3-10 years old and have a current value of approximately 12,000 dollars.

I have a mortgage. We purchased it for 9,000, and we put down 10%. The first loan was a 7 year arm at a rate of 6.5%, and the second loan was a home equity line of credit for $ 57,900. The second loan is a variable rate, pegged to the prime rate. When I first started that loan, it was at 8.5 %, but it is now as low as 4.2 percent. This, of course, changes with the prime rate. The first loan I pay on principle, and the current debt service is $ 448,000. The second loan is interest only, and still has a principle balance of ,900. The down turn in the housing market has left me with only about 2-4% equity in my home as the latest appraisal was only 0,000

My only other debt is a car loan which has a balance of 15,000 and a rate of 5.25%.

What should I do with this extra cash?

Do I:
1. Pay down that line of credit? (obviously this has a variable rate that can change, and is currently taking up 100% of my line of credit which impacts my credit score)
2. Buy a second property? There are some good deals out there for a second home (i.e. condo in Florida) or a rental property. This would be an investment property since we can get something very cheap, but the downside is managing the property.
3. Put it in an invest vehicle? A mutual fund, bonds, etc.
4. Leave it in my savings account?
5. Or something else?

How much of that cash should I keep in my account versus investing or paying of my debt?

Interesting Blogs

I have a fixed mortgage at 6.5% but my home equity loan just dropped down to 4%. Would it be legal to pay off my entire mortgage using my home equity line of credit? Refinancing wouldn’t do me any good since no one can match the 4% rate. I just want to make sure something like this is allowed and doesn’t run afoul of some federal law or banking rule.

Also, are there any cons to doing this? I’m 10 years into a 30-year fixed.

Interesting Blogs

Hello friends,

Does anyone know the current interest rate for the Student Federal Stafford Loan? I am looking to study for a master’s degree and would need to take out a loan. Currently I do have a home equity line of credit at an interest rate of about 8% and would be enough for the master’s degree for ,000.

Should I stick with my home equity line of credit or better to open a loan from Federal Stafford?

Thanks

Brian

Interesting Blogs

I forgot to mention .5 interest I paid on a Home Equity Line of Credit. I just got the document from the bank. This loan was used for personal use. Do I have to ammend the return ?. I don’t care about the tax benefit

Interesting Blogs

Just wondering if its better to refinance or take out a home equity line of credit as far as credit damage. Thanks!

Interesting Blogs