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Is it better to consolodate all debt into a first mortgage or to keep car loans seperate?
I hate to be paying on a vehical for 20 years even though you have the equity available in the house.
Just wanted to add that our credit score is 752 and we are going from a 30 year mortgage with 26 years left on it to a 20 at the same interest rate minus 1/4 percent for automatic payments. If we do put the truck loan on the mortgage we have been told it they will cut us a check for that amount and we will then deposit it and pay the loan off with a personal check so the truck will not have a lien on it.
Maybe a 2nd on the truck alone or making an automatic additional principal payment of $300 per month will work. I will have to discuss that with the bank. Thanks!
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| By
kawm63 |
Posted on
09/20/07 Total Answers
8 |
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| Answers- |
| You've answered your own question, and when you want to change the car, you'll no doubt get more finance but you'll STILL be paying for the last car through your re-mortgage -- DON'T DO IT |
| Answer by :
harleycharley On Date
2007-09-20 09:24:06 |
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| If you get a small equity loan or 2nd mortgage with a descent interest rate - you won't pay on it for 20-30 years like your first mortgage. You just pay it until it's paid off. some people choose that route because you can deduct the interest on a mortgage but not on a credit card. |
| Answer by :
Jeff On Date
2007-09-20 09:25:16 |
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| Consider your own statement: you would hate to be paying on a vehicle for 20 years.....! Do you see the problem here? You will be paying on a vehicle that, you MOST LIKELY won't OWN in 20 years! Yes, you may trade the vehivcle in, but, you will always look at your mortgage and think, "This is paying off the house and that car I bought 15 years ago!"
Having listened to Clark Howard, a noted consumer financial advocate, I think he'd tell you to keep the mortgage low and pay off the car within the 5 years: you'll be glad you did.
check Clark Howard's website for useful consumer financial information. The guy's a genius!! |
| Answer by :
SnitchMO On Date
2007-09-20 09:27:09 |
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| To add to what you have already been told, if you put your cars into your mortgage two additional things will happen.
First the cars will have liens on them tied to your mortgage so if you want to trade them in you will have to get lien releases from your mortgage company.
Second you will lose the reporting trade lines that the cars provide.
I would not advise doing this unless it's life or death. |
| Answer by :
SPIFIMAN1 On Date
2007-09-20 09:29:15 |
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| Mortgages are tax deductible, But is it worth the extra amount in monthly payments and interest for 15 or 30 years? Do not forget your house payments will go up pretty much every year anyway because of insurance and property taxes, then there's always the chance you lender will screw up your escrow account and that could raise your payment sometimes a lot! The point is, try to plan for the unknowns, you could always try to pay off your cars faster by sending extra cash to the payments principle every month, but make sure there's no penalty for early payoff! Gosh I'm sorry! I didn't mean for this to sound so negative! I just wanted you to be able to make an educated and well informed decision! Owning your own home is a wonderful step in our lives! May your home always be a sanctuary of peace and happiness! |
| Answer by :
ReBelle On Date
2007-09-20 09:32:17 |
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| Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy.
http://badcredits.awardspace.com/Loan-Consolidation.htm
Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail. |
| Answer by :
mystatusur On Date
2007-09-20 09:33:31 |
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| It is really hard for people or for me to even answer this question for you. I think if you are going to do this you have to be really disciplined, organized and punctual. In reality I think it makes sense if you plan to not obtain another car loan or any other debt. My husbands' friend actually did this about 2 yrs. ago. He had a home built, included all his debt and his auto loan in his mortgage. He also received $50,000 back at closing. When it was said and done he had a mortgage payment of $3800 a month. So all he pays is his mortgage ever month instead of several little bills. He has been really good and not obtaining any new loans.
But you have to way the pros and cons. You must decide if this is the right thing for you. People do debt consolidation loans everyday. It is a home equity loan or a second mortgage. If you know that you will not get any new debt then I say do it!
My husband and I are planning to buy a new home in about 3-4 months. We are paying all our credit cards debts off now. I do have a leased vehicle. The only thing he want is to get $20,000 to buy all the house furniture. I have heard of people doing all kind of things. If people tell you it is crazy ..... tell them to watch HGTV's Hidden Potential. They are using the mortgage amount to reconstruct and furnish their new homes. So it and any thing is possible!
GOOD LUCK! |
| Answer by :
ANJANETTE C On Date
2007-09-20 11:19:35 |
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| Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Consolidation-Basics.html |
| Answer by :
Pitty T On Date
2007-09-21 04:28:00 |
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