Any smart with money folks out there?

[BeepBeepRR]

I’m think about refinancing my house. I have 4 years left of my original mortgage. I am currently in a sort of a bind. So which would be a better way to go? My house is currently worth about 250000 dollars I owe less than 20 on it. My thoughts are to get some cash and pay off credit cards and my truck. And only have one bill which by the estimated calculator would be about 200 to 300 dollars more than my current mortgage rate. But on the other hand I would have all my debt gone. Does this make sense to do? As usual my company is in a lul and there hasn’t beeen any work for us for about 3 months? I need to get stuff in order just looking for some insight from you guys that’s have been there done that.

 

[cr8crshr]

Just a consideration here... With the amount of current interest...AKA JUICE... being assessed, I would be cautious in doing so as you don't want to bite off more than you can chew. And I do not see much relief in the rates lowing to a more manageable number in the very near future. You also stated that you are in a state of flux with your work. That also is a factor so I would take a good hard look at your needs vs wants and then go from there. Tough call to make and only you can say whether or not you can swing it. But just be very sure before you sign the contract note and then regret it. Always a tough call in this day and age so only you can make that decision. Good luck in whatever direction you go...cr8crshr/Bill

 

[#41]

It all depends on the interest rates of each outstanding or new debt, and the cost of securing the refinance. Credit card balances are usually at very high interest, so that would be the one to look at turning into a more affordable rate via home refinance (or maybe better... a home equity loan). If you don't belong to a credit union, consider joining and looking at that for your loan source. They usually have favorable rates.

 

[66 Sat]

You have to look at all the different interest rates/fees you are paying for each smaller debt (truck, credit cards etc) and work out if having one bigger debt with the mortgage interest rate is cheaper overall.
You still owe the same amount of money, your debt isn't gone, but it's consolidated in one place.
If the truck interest rate is say 8% and the mortgage rate is 5% then you are technically better off paying off the truck, but you need to look at the terms. If you're paying the truck off in 5 years with higher minimum repayments then if you consolidate the debt into your mortgage you might be paying off a lesser amount for 20 years...and pay way more overall.
People tend to pay the minimum amount only so adding everything into your house might mean you're better off in the short term but worse off in the long term.
The other risk is that once you have (in your mind) no debt other than your home loan, you buy a new truck, build up credit card debt again, so now you're much worse off.

 

[Dave6T4]

Don't look at us. We buy Mopars with our money. How smart is that?

 

[69a100]

I’m think about refinancing my house. I have 4 years left of my original mortgage. I am currently in a sort of a bind. So which would be a better way to go?

Why didn't you do this 5 years ago when interest rates were low? You're just robbin Peter to pay Paul now! Some people tend to think outside the box, while others wear blinders! Good Luck

 

[BeepBeepRR]

Don't look at us. We buy Mopars with our money. How smart is that?

Lol I under stand.

 

[BeepBeepRR]

I have no need for another new vehicle nor credit cards my truck is used and the interest rate is way higher than I believe is normal. Due to the fact that it was a used truck. I believe if I consolidate all of my credit card debt and pay off my original mortgage with the borrowed money then there would be that payment gone as well. I would like to make minimal amounts of payments. Instead of having 2 credit cards and a personal loan plus my house, truck payments I think using the house to pay down debt, not just paying it down but paying it off. Cutting off the bleeding leg.

 

[Jesse6869]

Like everyone here said interest rates are going to be your killer. What about 401k, are you union you can pull money out of your union. Worst thing to do is use your home as a Bank, never touch the house.

 

[Takoctopus]

I would get a different job. Three months of any job sucks. Warehouses pretty good and you do not have to be some super genius to work there.

 

[66 Sat]

I've just noticed you said you only have 4 years left on your home loan.
If you don't extend this term and the interest rate is less than the truck/credit card rate then you would be better off re-drawing off your home loan to pay these other debts off. If you can afford the new repayment amount then in 4 years you'll be debt free.
If you can't re-draw against your existing loan and you need to refinance, then try to lock in a fixed rate loan for the remaining term. It might be 1% higher than what the variable rate is but should still be lower than the truck interest rate and you will have peace of mind.

 

[dodgedifferent2]

Problem with consolidating.
You may rack up more credit card debt.
Best to keep paying minimum on mortgage but dump cash at credit cards etc. Highest rate gets paid off first and don't buy unless desperately needed. Extra cash goes to debt.

Problem with financial advisors is some are paid on commission etc. Don't always trust those financial planners. Do your homework.

 

[68BabyBlue]

Lol I under stand.

I bought Mopars with my investment gains. That was an affordable indulgence. In my early years I struggled. It is critical to keep the cost of your debt at a minimum. Debt isn’t bad if your assets yield a higher return. Rich folks call it leverage. Agree that most financial planners are charlatans.

 

[Budnicks]

On a mortgage or a 2nd etc.
you'll pay back like/almost 3 times the amount
you org. borrowed...

You will extend the (now at only 4 years) pay-off date, to later,
unless they do some fancy financing ****
still have only 4 years left & just a higher $$$ amount for the new mortgage/loan amount
for the funds needed...
You'll pay a lot of $$ in compounded interest on a mortgage...

Now if it was still 3% like under the last admin. it wouldn't be too bad,
get a 2nd or refinance
but at 7%+ from the current admin./10%+ inflation
or more now this admin.
(depending on your current mortgage rates, with only 4 years left, it's % rates)
it can get expensive

&

if your equity isn't at least 20% a min.,
you'll need or their lending terms may require,
PMI - property mortgage insurance, with added to that loaned $$'s #
You probably wouldn't (I assume) have to worry about the ladder...

 

[Richard Cranium]

Sell the car that is in your avatar & pay off your debts .... assuming that you still have it.

 

[Dennis H]

2 jobs. YOUR HOUSE IS NOT A BANK. You have to live somewhere. Elderly neighbors who did this, have mortgages in their 70’s. No way. No how. Stay out of restaurants unless you work there like Dave Ramsey says.

 

[70 sublime]

I was going to say the same thing Sell your toy car and pick up something else in 4 years when you got the extra cash

 

[Dennis H]

I’m not so quick to sell. This is a short term problem. Ride it out. Play with budget.

 

[dadsbee]

Pasta...pasta and more pasta. Bin Der.. Done Dat. More times than I care to admit.

 

[#41]

Whatever you do, #1 priority is pay off the credit cards first. Making a minimal payment on what is probably 15-25% interest is like rowing a boat up a waterfall. Do not be concerned about adding debt on your house to do this. Interest rates are not at historic lows anymore, but they are way less than credit card interest.